Jupiter Asset Management Ltd. Cuts Stake in Xylem Inc. $XYL

Key Points

• Jupiter Asset Management trimmed its Xylem stake by 10.4% in the fourth quarter, selling 22,080 shares and ending with 189,517 shares valued at about $25.8 million.
• Xylem posted better-than-expected quarterly results, with EPS of $1.12 versus $1.09 expected and revenue of $2.13 billion, up 2.7% from a year earlier.
• The company also announced a quarterly dividend of $0.43 per share and a new $1.5 billion stock buyback authorization, while analysts maintain a consensus rating of “Moderate Buy.”

Jupiter Asset Management Ltd. lowered its holdings in shares of Xylem Inc. (NYSE:XYL - Free Report) by 10.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 189,517 shares of the industrial products company's stock after selling 22,080 shares during the quarter. Jupiter Asset Management Ltd. owned approximately 0.08% of Xylem worth $25,808,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Knuff & Co LLC purchased a new stake in shares of Xylem during the third quarter worth about $27,000. Wexford Capital LP purchased a new stake in shares of Xylem during the third quarter worth about $27,000. Ramirez Asset Management Inc. grew its position in shares of Xylem by 100.0% during the third 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 in the last quarter. Board of the Pension Protection Fund purchased a new stake in shares of Xylem during the fourth quarter worth about $27,000. Finally, Entrust Financial LLC purchased a new stake in shares of Xylem during the fourth quarter worth about $45,000. Hedge funds and other institutional investors own 87.96% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on the company. TD Cowen reiterated a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. JPMorgan Chase & Co. cut their price target on Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a report on Thursday, April 16th. Weiss Ratings cut Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. Citigroup cut their price target on Xylem from $174.00 to $168.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Finally, Robert W. Baird set a $161.00 price target on Xylem in a report on Wednesday, February 11th. Seven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Xylem currently has an average rating of "Moderate Buy" and a consensus price target of $152.77.

Insider Activity at Xylem

In related news, Director Jerome A. Peribere acquired 1,210 shares of the stock in a transaction dated Monday, May 4th. The stock was acquired at an average cost of $116.61 per share, with a total value of $141,098.10. Following the purchase, the director directly 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, 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 completion of the sale, the chief accounting officer directly owned 3,605 shares of the company's stock, valued at $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.32% of the stock is owned by company insiders.

Xylem Stock Performance

NYSE XYL opened at $109.58 on Friday. The stock has a market capitalization of $26.05 billion, a PE ratio of 27.26, a P/E/G ratio of 1.55 and a beta of 1.08. The business has a 50 day simple moving average of $117.84 and a two-hundred day simple moving average of $129.76. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10. Xylem Inc. has a 1-year low of $105.29 and a 1-year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.03. The business had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.03 EPS. 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 EPS for the current fiscal year.

Xylem Announces Dividend

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

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

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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