Forsta AP Fonden Sells 22,900 Shares of Xylem Inc. $XYL

Key Points

• Forsta AP Fonden reduced its Xylem stake by 29.9% in the fourth quarter, selling 22,900 shares and leaving it with 53,800 shares worth about $7.33 million.
• Analyst sentiment on Xylem remains generally positive, with a Moderate Buy consensus and an average price target of $152.77; recent targets ranged from $138 to $161.
• Xylem reported solid quarterly results, beating EPS estimates at $1.12 versus $1.09 expected, and the company also announced a quarterly dividend of $0.43 per share plus a $1.5 billion share buyback program.

Forsta AP Fonden cut its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 29.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 53,800 shares of the industrial products company's stock after selling 22,900 shares during the period. Forsta AP Fonden's holdings in Xylem were worth $7,326,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in XYL. Knuff & Co LLC bought a new position in shares of Xylem during the third quarter valued at about $27,000. Board of the Pension Protection Fund bought a new position in shares of Xylem during the fourth quarter valued at about $27,000. Wexford Capital LP bought a new position in shares of Xylem during the third quarter valued at about $27,000. Ramirez Asset Management Inc. raised its stake in shares of 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 acquiring an additional 100 shares during the last quarter. Finally, FWL Investment Management LLC bought a new position in shares of Xylem during the second quarter valued at about $43,000. 87.96% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. The Goldman Sachs Group set a $158.00 price target on shares of Xylem in a research report on Wednesday, February 11th. Oppenheimer reduced their price target on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. Robert W. Baird set a $161.00 price target on shares of Xylem in a research report on Wednesday, February 11th. Mizuho set a $138.00 price target on shares of Xylem in a research report on Wednesday, February 11th. Finally, TD Cowen reiterated a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Seven investment 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 company has a consensus rating of "Moderate Buy" and an average target price of $152.77.

Insider Buying and Selling

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

Xylem Trading Down 1.1%

NYSE:XYL opened at $108.38 on Tuesday. The company's 50 day moving average price is $117.60 and its 200-day moving average price is $129.31. Xylem Inc. has a 52 week low of $105.29 and a 52 week high of $154.27. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The stock has a market cap of $25.76 billion, a price-to-earnings ratio of 26.96, a PEG ratio of 1.56 and a beta of 1.05.

Xylem (NYSE:XYL - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 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 firm had revenue of $2.13 billion for the quarter, compared to analysts' expectations of $2.11 billion. During the same quarter in the prior year, the company posted $1.03 earnings per share. The business's revenue for the quarter was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, equities research analysts forecast that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.

Xylem Dividend Announcement

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 1.6%. Xylem's dividend payout ratio is presently 42.79%.

Xylem declared that its Board of Directors has authorized a share buyback plan 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 buy up to 4.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its shares are 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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