Geode Capital Management LLC Grows Stock Position in Xylem Inc. $XYL

Key Points

• Geode Capital Management increased its Xylem stake by 2.4% in the fourth quarter, bringing its holdings to 6.36 million shares valued at about $862.4 million.
• Insider activity was mixed: Director Jerome A. Peribere bought 1,210 shares, while CAO Geri-Michelle McShane sold 4,269 shares in separate May transactions.
• Xylem beat quarterly expectations, reporting $1.12 EPS on $2.13 billion in revenue, and the company also authorized a $1.5 billion share buyback and announced a quarterly dividend of $0.43 per share.

Geode Capital Management LLC increased its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 2.4% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,357,278 shares of the industrial products company's stock after buying an additional 151,754 shares during the period. Geode Capital Management LLC owned about 2.61% of Xylem worth $862,364,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in XYL. Knuff & Co LLC acquired a new position in shares of Xylem during the 3rd quarter worth approximately $27,000. Board of the Pension Protection Fund acquired a new position in shares of Xylem during the 4th quarter worth approximately $27,000. Wexford Capital LP acquired a new position in shares of Xylem during the 3rd quarter worth approximately $27,000. Ramirez Asset Management Inc. raised its position 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 purchasing an additional 100 shares during the last quarter. Finally, FWL Investment Management LLC acquired a new position in shares of Xylem during the 2nd quarter worth approximately $43,000. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Xylem

In related news, Director Jerome A. Peribere purchased 1,210 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was purchased at an average price of $116.61 per share, with a total value of $141,098.10. Following the completion of the transaction, the director owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $117.46, for a total value of $501,436.74. Following the sale, the chief accounting officer directly owned 3,605 shares of the company's stock, 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 Stock Performance

NYSE XYL opened at $109.58 on Friday. The business's 50-day moving average price is $117.84 and its 200 day moving average price is $129.76. Xylem Inc. has a twelve month low of $105.29 and a twelve month high of $154.27. The company has a market capitalization of $26.05 billion, a PE ratio of 27.26, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. The company has a current ratio of 1.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13.

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

Xylem announced that its board has initiated a share buyback plan on Wednesday, February 25th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the industrial products company to reacquire up to 4.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Xylem Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, May 28th will be given a dividend of $0.43 per share. The ex-dividend date of this dividend is Thursday, May 28th. This represents a $1.72 annualized dividend and a yield of 1.6%. Xylem's dividend payout ratio is 42.79%.

Analyst Upgrades and Downgrades

XYL has been the subject of a number of recent research reports. TD Cowen reiterated a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Royal Bank Of Canada dropped their price objective on Xylem from $176.00 to $162.00 and set an "outperform" rating for the company in a research report on Wednesday, February 11th. Robert W. Baird set a $161.00 price objective on Xylem in a research report on Wednesday, February 11th. Jefferies Financial Group reiterated a "hold" rating and set a $130.00 price objective (down from $140.00) on shares of Xylem in a research report on Tuesday, March 31st. Finally, The Goldman Sachs Group set a $158.00 target price on shares of Xylem in a research report on Wednesday, February 11th. Seven investment analysts have rated the stock with a Buy rating and six have issued 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 $152.77.

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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