Franklin Resources Inc. Boosts Position in Xylem Inc. $XYL

Key Points

• Franklin Resources increased its stake in Xylem by 1.4% in Q3 to 1,777,680 shares (0.73% of the company), valued at about $262.2 million.
• Xylem raised its quarterly dividend to $0.43 (annualized $1.72, yield 1.4%) and its board approved a $1.5 billion share buyback program to repurchase up to 4.8% of shares.
• The company reported $1.42 EPS (in line with estimates) with revenue up 6.3% year-over-year, set FY2026 guidance of $5.350–$5.560 EPS, and carries a consensus analyst rating of "Moderate Buy" with an average target of $158.08.

Franklin Resources Inc. grew its position in Xylem Inc. (NYSE:XYL - Free Report) by 1.4% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,777,680 shares of the industrial products company's stock after buying an additional 24,732 shares during the quarter. Franklin Resources Inc. owned 0.73% of Xylem worth $262,208,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in XYL. Vanguard Group Inc. grew its stake in Xylem by 0.7% in the 3rd quarter. Vanguard Group Inc. now owns 29,902,236 shares of the industrial products company's stock valued at $4,410,580,000 after acquiring an additional 204,407 shares during the last quarter. Geode Capital Management LLC increased its holdings in Xylem by 2.3% during the 2nd quarter. Geode Capital Management LLC now owns 6,141,231 shares of the industrial products company's stock valued at $791,029,000 after acquiring an additional 136,605 shares in the last quarter. Amundi raised its position in Xylem by 17.0% during the second quarter. Amundi now owns 5,714,576 shares of the industrial products company's stock worth $730,717,000 after acquiring an additional 830,337 shares during the last quarter. Impax Asset Management Group plc lifted its holdings in shares of Xylem by 13.7% in the second quarter. Impax Asset Management Group plc now owns 5,499,688 shares of the industrial products company's stock valued at $709,183,000 after purchasing an additional 663,191 shares in the last quarter. Finally, Swedbank AB lifted its holdings in shares of Xylem by 19.0% in the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company's stock valued at $766,669,000 after purchasing an additional 830,821 shares in the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

Xylem Stock Performance

Shares of XYL opened at $119.94 on Friday. Xylem Inc. has a 1 year low of $100.47 and a 1 year high of $154.27. The company's 50 day simple moving average is $134.31 and its 200 day simple moving average is $140.06. The company has a market capitalization of $29.16 billion, a price-to-earnings ratio of 30.60, a PEG ratio of 1.75 and a beta of 1.17. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62.

Xylem (NYSE:XYL - Get Free Report) last released 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 period in the previous year, the company posted $1.18 earnings per share. Xylem's quarterly 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. On average, sell-side analysts predict that Xylem Inc. will post 4.65 EPS for the current year.

Xylem Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th will be paid a $0.43 dividend. The ex-dividend date is Tuesday, February 24th. This is an increase from Xylem's previous quarterly dividend of $0.40. This represents a $1.72 annualized dividend and a yield of 1.4%. Xylem's payout ratio is currently 43.88%.

Xylem announced that its board has approved a stock repurchase plan on Wednesday, February 25th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the industrial products company to reacquire up to 4.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the stock. UBS Group reissued a "buy" rating and set a $155.00 price objective on shares of Xylem in a research note on Friday, February 13th. Stifel Nicolaus reduced their target price on Xylem from $178.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday, February 11th. Oppenheimer set a $165.00 target price on Xylem in a report on Thursday, February 12th. Citigroup cut their price target on Xylem from $182.00 to $174.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. Finally, William Blair started coverage on Xylem in a research report on Monday, January 26th. They issued an "outperform" rating on the stock. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Xylem presently has a consensus rating of "Moderate Buy" and an average price target of $158.08.

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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