ExodusPoint Capital Management LP Makes New Investment in Xylem Inc. $XYL

Key Points

• ExodusPoint Capital Management opened a new position in Xylem during the fourth quarter, buying 131,006 shares valued at about $17.8 million.
• Xylem reported solid quarterly results, with EPS of $1.12 beating estimates and revenue of $2.13 billion topping expectations; the company also reaffirmed FY 2026 EPS guidance of 5.35 to 5.60.
• The company returned cash to shareholders through a quarterly dividend of $0.43 per share and a $1.5 billion stock buyback program, while analysts currently view the stock as a Moderate Buy with a consensus price target of $152.77.

ExodusPoint Capital Management LP purchased a new position in shares of Xylem Inc. (NYSE:XYL - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 131,006 shares of the industrial products company's stock, valued at approximately $17,840,000. ExodusPoint Capital Management LP owned approximately 0.05% of Xylem at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Knuff & Co LLC bought a new stake in shares of Xylem during the 3rd quarter worth about $27,000. Board of the Pension Protection Fund bought a new stake in shares of Xylem in the 4th quarter worth approximately $27,000. Commonwealth Retirement Investments LLC bought a new stake in shares of Xylem in the 4th quarter worth approximately $27,000. Wexford Capital LP acquired a new stake in Xylem during the third quarter valued at approximately $27,000. Finally, Ramirez Asset Management Inc. lifted its stake in Xylem by 100.0% during the third quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 100 shares during the last quarter. 87.96% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms recently commented on XYL. Oppenheimer cut their target price on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Jefferies Financial Group reissued a "hold" rating and set a $130.00 price objective (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. TD Cowen reissued a "hold" rating on shares of Xylem in a research note on Monday, February 23rd. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 8th. Finally, UBS Group raised their price objective on Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $152.77.

Xylem Stock Up 1.1%

XYL stock opened at $112.19 on Wednesday. Xylem Inc. has a 52-week low of $105.29 and a 52-week high of $154.27. The company's 50 day simple moving average is $115.39 and its 200-day simple moving average is $126.83. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10. The firm has a market capitalization of $26.67 billion, a P/E ratio of 27.91, a P/E/G ratio of 1.58 and a beta of 1.04.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.03. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same quarter in the previous year, the business earned $1.03 earnings per share. The firm's revenue was up 2.7% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, equities research analysts anticipate that Xylem Inc. will post 5.51 EPS for the current year.

Xylem Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, May 28th will be issued a dividend of $0.43 per share. The ex-dividend date is Thursday, May 28th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.5%. Xylem's payout ratio is currently 42.79%.

Xylem declared that its board has authorized a stock buyback plan on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the industrial products company to buy up to 4.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Jerome A. Peribere acquired 1,210 shares of the company's stock in a transaction on Monday, May 4th. The shares were purchased at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the purchase, the director owned 27,209 shares in the company, valued at $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the completion of the transaction, the chief accounting officer owned 3,605 shares in the company, valued at approximately $423,443.30. This represents a 54.22% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.32% of the stock is owned by insiders.

About Xylem

Xylem Inc NYSE: XYL is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.

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