Fernbridge Capital Management LP Takes Position in Xylem Inc. $XYL

Key Points

• Fernbridge Capital Management LP opened a new position in Xylem, purchasing 282,762 shares worth about $41.7 million, which equals roughly 2.0% of the fund's portfolio and about 0.12% of Xylem's shares.
• Xylem's board authorized a $1.50 billion share buyback (up to 4.8% of outstanding shares) and raised the quarterly dividend to $0.43 per share (annualized $1.72, ~1.4% yield).
• Analysts maintain a consensus "Moderate Buy" with a $158.08 price target; Xylem reported $1.42 EPS (in line with estimates), revenue up 6.3%, and set FY2026 guidance of 5.350–5.560 EPS.

Fernbridge Capital Management LP bought a new position in shares of Xylem Inc. (NYSE:XYL - Free Report) in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 282,762 shares of the industrial products company's stock, valued at approximately $41,707,000. Xylem accounts for approximately 2.0% of Fernbridge Capital Management LP's portfolio, making the stock its 15th biggest holding. Fernbridge Capital Management LP owned approximately 0.12% of Xylem as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the business. SJS Investment Consulting Inc. boosted its position in Xylem by 1,844.4% during the third quarter. SJS Investment Consulting Inc. now owns 175 shares of the industrial products company's stock worth $26,000 after purchasing an additional 166 shares during the period. Knuff & Co LLC bought a new position in shares of Xylem in the third quarter valued at about $27,000. First Horizon Corp acquired a new stake in shares of Xylem during the 3rd quarter worth about $30,000. Ramirez Asset Management Inc. lifted its stake in shares of Xylem by 100.0% during the 3rd quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock worth $30,000 after buying an additional 100 shares during the last quarter. Finally, Grey Fox Wealth Advisors LLC bought a new stake in shares of Xylem during the 3rd quarter worth about $34,000. Institutional investors own 87.96% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Robert W. Baird set a $161.00 price target on shares of Xylem in a report on Wednesday, February 11th. TD Cowen restated a "hold" rating on shares of Xylem in a report on Monday, February 23rd. UBS Group reaffirmed a "buy" rating and issued a $155.00 target price on shares of Xylem in a research report on Friday, February 13th. Zacks Research cut Xylem from a "strong-buy" rating to a "hold" rating in a report on Tuesday, November 18th. Finally, Wall Street Zen downgraded Xylem from a "buy" rating to a "hold" rating in a research note on Saturday, December 27th. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $158.08.

Xylem Stock Performance

NYSE XYL opened at $119.88 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.62 and a debt-to-equity ratio of 0.12. The company has a market capitalization of $29.15 billion, a P/E ratio of 30.58, a P/E/G ratio of 1.72 and a beta of 1.17. Xylem Inc. has a 12-month low of $100.47 and a 12-month high of $154.27. The firm has a 50-day moving average price of $133.97 and a two-hundred day moving average price of $139.90.

Xylem (NYSE:XYL - Get Free Report) last announced its earnings results on Tuesday, February 10th. The industrial products company reported $1.42 EPS for the quarter, hitting the consensus estimate of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same quarter in the previous year, the firm earned $1.18 EPS. Xylem's revenue was up 6.3% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Analysts anticipate that Xylem Inc. will post 4.65 earnings per share for the current year.

Xylem Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th will be paid a dividend of $0.43 per share. This is a boost from Xylem's previous quarterly dividend of $0.40. The ex-dividend date is Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a yield of 1.4%. Xylem's dividend payout ratio is 43.88%.

Xylem announced that its board has initiated a stock repurchase program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its stock is undervalued.

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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