Invesco Ltd. Sells 120,794 Shares of Xylem Inc. (NYSE:XYL)

Key Points

• Invesco Ltd. reduced its stake in Xylem Inc. by 3.0%, selling 120,794 shares and holding approximately 3,889,113 shares valued at $464.6 million.
• Xylem announced a quarterly dividend of $0.40 per share, resulting in an annualized dividend yield of 1.1% and a payout ratio of 41.56%.
• Analysts have given Xylem shares a consensus rating of "Moderate Buy" with an average price target of $151.57, reflecting positive growth expectations.

Invesco Ltd. lowered its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 3.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,889,113 shares of the industrial products company's stock after selling 120,794 shares during the period. Invesco Ltd. owned about 1.60% of Xylem worth $464,593,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also added to or reduced their stakes in the company. Valley National Advisers Inc. grew its position in Xylem by 84.9% in the first quarter. Valley National Advisers Inc. now owns 220 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 101 shares in the last quarter. Perkins Coie Trust Co bought a new position in Xylem in the first quarter valued at $27,000. Center for Financial Planning Inc. grew its position in Xylem by 52.0% in the first quarter. Center for Financial Planning Inc. now owns 266 shares of the industrial products company's stock valued at $32,000 after purchasing an additional 91 shares in the last quarter. Headlands Technologies LLC grew its position in Xylem by 90.6% in the first quarter. Headlands Technologies LLC now owns 305 shares of the industrial products company's stock valued at $36,000 after purchasing an additional 145 shares in the last quarter. Finally, Heck Capital Advisors LLC bought a new position in Xylem in the fourth quarter valued at $36,000. Institutional investors own 87.96% of the company's stock.

Wall Street Analyst Weigh In

XYL has been the subject of a number of analyst reports. Stifel Nicolaus raised their target price on shares of Xylem from $162.00 to $175.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Citigroup reiterated a "buy" rating and issued a $152.00 price target (up previously from $137.00) on shares of Xylem in a research note on Monday, July 14th. JPMorgan Chase & Co. began coverage on shares of Xylem in a research note on Friday, May 30th. They issued an "overweight" rating and a $148.00 price target for the company. Wall Street Zen upgraded shares of Xylem from a "hold" rating to a "buy" rating in a research note on Saturday. Finally, UBS Group reiterated a "buy" rating and issued a $168.00 price target (up previously from $164.00) on shares of Xylem in a research note on Tuesday, August 5th. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to MarketBeat.com, Xylem presently has an average rating of "Moderate Buy" and a consensus price target of $151.57.

Xylem Stock Performance

Xylem stock traded up $0.52 during midday trading on Tuesday, hitting $143.39. The company's stock had a trading volume of 867,664 shares, compared to its average volume of 1,117,068. Xylem Inc. has a 1-year low of $100.47 and a 1-year high of $145.33. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.90 and a quick ratio of 1.43. The company has a 50-day moving average price of $131.90 and a two-hundred day moving average price of $125.44. The company has a market cap of $34.90 billion, a price-to-earnings ratio of 37.24, a PEG ratio of 2.48 and a beta of 1.11.

Xylem (NYSE:XYL - Get Free Report) last issued its earnings results on Thursday, July 31st. The industrial products company reported $1.26 EPS for the quarter, beating the consensus estimate of $1.15 by $0.11. The company had revenue of $2.30 billion during the quarter, compared to analysts' expectations of $2.20 billion. Xylem had a net margin of 10.74% and a return on equity of 10.33%. The business's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the previous year, the company earned $1.09 EPS. As a group, sell-side analysts predict that Xylem Inc. will post 4.65 earnings per share for the current year.

Xylem Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 26th. Stockholders of record on Thursday, May 29th were given a $0.40 dividend. The ex-dividend date was Thursday, May 29th. This represents a $1.60 annualized dividend and a dividend yield of 1.1%. Xylem's payout ratio is presently 41.56%.

Xylem Profile

Xylem Inc, together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands.