Jones Kertz & Associates Inc. Makes New Investment in Xylem Inc. $XYL

Key Points

• Jones Kertz & Associates purchased a new position of 32,143 Xylem shares worth about $4.38 million in Q4, representing roughly 2.2% of its portfolio and making Xylem its 14th largest holding.
• Xylem's board authorized a $1.5 billion stock buyback (up to 4.8% of shares) and raised the quarterly dividend to $0.43 (annualized $1.72, ~1.4% yield), signaling confidence in the stock’s valuation.
• Operationally, Xylem reported Q earnings of $1.42 (in line with estimates) and revenue up 6.3% YoY, set FY2026 EPS guidance of 5.350–5.560 (analyst consensus 5.47), and carries a consensus price target of $153.77 (Moderate Buy).

Jones Kertz & Associates Inc. purchased a new position in shares of Xylem Inc. (NYSE:XYL - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 32,143 shares of the industrial products company's stock, valued at approximately $4,377,000. Xylem comprises approximately 2.2% of Jones Kertz & Associates Inc.'s investment portfolio, making the stock its 14th largest holding.

Other hedge funds have also recently added to or reduced their stakes in the company. Schroder Investment Management Group raised its stake in shares of Xylem by 2,055.2% during the third quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company's stock worth $171,687,000 after acquiring an additional 1,137,342 shares in the last quarter. Swedbank AB raised its stake in shares of Xylem by 19.0% during the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company's stock worth $766,669,000 after acquiring an additional 830,821 shares in the last quarter. Balyasny Asset Management L.P. raised its stake in shares of Xylem by 346.2% during the third quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company's stock worth $105,160,000 after acquiring an additional 553,152 shares in the last quarter. Adage Capital Partners GP L.L.C. purchased a new position in shares of Xylem during the second quarter worth approximately $64,407,000. Finally, Lazard Asset Management LLC raised its stake in shares of Xylem by 844.4% during the second quarter. Lazard Asset Management LLC now owns 392,440 shares of the industrial products company's stock worth $50,765,000 after acquiring an additional 350,887 shares in the last quarter. Institutional investors own 87.96% of the company's stock.

Xylem Stock Performance

NYSE:XYL opened at $120.46 on Tuesday. The firm has a market cap of $29.29 billion, a PE ratio of 30.73, a price-to-earnings-growth ratio of 1.74 and a beta of 1.18. Xylem Inc. has a fifty-two week low of $107.04 and a fifty-two week high of $154.27. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62. The business has a 50 day moving average price of $124.60 and a 200-day moving average price of $136.25.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, meeting analysts' consensus estimates of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.The business's revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.18 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Equities research analysts predict that Xylem Inc. will post 5.47 earnings per share for the current year.

Xylem declared that its board has initiated a stock buyback plan on Wednesday, February 25th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's board believes its shares are undervalued.

Xylem Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were paid a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a dividend yield of 1.4%. This is a positive change from Xylem's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, February 24th. Xylem's payout ratio is currently 43.88%.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. William Blair began coverage on shares of Xylem in a research note on Monday, January 26th. They set an "outperform" rating on the stock. JPMorgan Chase & Co. reduced their price objective on Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Barclays reduced their price objective on Xylem from $166.00 to $156.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 11th. Weiss Ratings cut Xylem from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, April 6th. Finally, Citigroup reduced their price objective on Xylem from $182.00 to $174.00 and set a "buy" rating on the stock in a research note on Wednesday, February 11th. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $153.77.

Xylem 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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