Handelsbanken Fonder AB Has $82.84 Million Stake in Xylem Inc. $XYL

Key Points

• Handelsbanken Fonder AB cut its Xylem stake by 30.1% in the fourth quarter, though it still held 608,331 shares valued at about $82.84 million.
• Xylem’s latest quarterly results beat expectations, with EPS of $1.12 versus the $1.09 estimate and revenue of $2.13 billion; the company also reaffirmed a full-year outlook of 5.35 to 5.60 EPS.
• The company is supporting shareholder returns through a $1.5 billion share repurchase plan and a quarterly dividend of $0.43 per share, while analysts currently rate the stock a Moderate Buy with an average target price of $152.77.

Handelsbanken Fonder AB decreased its holdings in shares of Xylem Inc. (NYSE:XYL - Free Report) by 30.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 608,331 shares of the industrial products company's stock after selling 262,073 shares during the quarter. Handelsbanken Fonder AB owned approximately 0.25% of Xylem worth $82,843,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in the business. Vanguard Personalized Indexing Management LLC raised its position in Xylem by 19.0% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 56,216 shares of the industrial products company's stock worth $8,292,000 after acquiring an additional 8,960 shares in the last quarter. Fisher Asset Management LLC raised its position in Xylem by 6.4% during the third quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company's stock worth $59,681,000 after acquiring an additional 24,352 shares in the last quarter. LGT Capital Partners LTD. raised its position in Xylem by 18.4% during the third quarter. LGT Capital Partners LTD. now owns 268,704 shares of the industrial products company's stock worth $39,634,000 after acquiring an additional 41,730 shares in the last quarter. AEGON ASSET MANAGEMENT UK Plc raised its position in Xylem by 9.8% during the third quarter. AEGON ASSET MANAGEMENT UK Plc now owns 417,651 shares of the industrial products company's stock worth $61,629,000 after acquiring an additional 37,189 shares in the last quarter. Finally, Strs Ohio raised its position in Xylem by 107.1% during the third quarter. Strs Ohio now owns 197,819 shares of the industrial products company's stock worth $29,178,000 after acquiring an additional 102,304 shares in the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

Insider Activity

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm'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 value of $501,436.74. Following the sale, the chief accounting officer directly owned 3,605 shares in the company, valued at approximately $423,443.30. This trade represents a 54.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jerome A. Peribere purchased 1,210 shares of Xylem stock in a transaction dated Monday, May 4th. The stock was bought at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of 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 position. Additional details regarding this purchase are available in the official SEC disclosure. 0.32% of the stock is owned by company insiders.

Xylem Price Performance

XYL stock opened at $108.32 on Tuesday. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. Xylem Inc. has a 12 month low of $107.79 and a 12 month high of $154.27. The firm has a market cap of $25.75 billion, a P/E ratio of 26.95, a P/E/G ratio of 1.54 and a beta of 1.08. The company's 50-day moving average price is $120.05 and its two-hundred day moving average price is $132.24.

Xylem (NYSE:XYL - Get Free Report) last released its earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $2.11 billion. During the same period last year, the firm earned $1.03 EPS. The business's quarterly 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. On average, analysts anticipate that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.

Xylem announced that its board has authorized a share repurchase 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 repurchase up to 4.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Xylem Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th will be issued a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, May 28th. Xylem's dividend payout ratio (DPR) is currently 42.79%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on XYL. Oppenheimer dropped 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. The Goldman Sachs Group set a $158.00 price objective on shares of Xylem in a research report on Wednesday, February 11th. UBS Group increased their price objective on shares of Xylem from $132.00 to $133.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. TD Cowen reissued a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Finally, William Blair began coverage on shares of Xylem in a research report on Monday, January 26th. They issued an "outperform" rating on the stock. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Xylem presently has an average rating of "Moderate Buy" and an average target price of $152.77.

Xylem Company Profile

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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