King Luther Capital Management Corp Reduces Stake in Xylem Inc. $XYL

Key Points

• King Luther Capital Management trimmed its Xylem stake by 1.0% in the fourth quarter, holding 989,274 shares worth about $134.7 million after the sale.
• Xylem posted better-than-expected quarterly results, reporting $1.12 EPS on revenue of $2.13 billion, and raised its FY 2026 EPS guidance to $5.35-$5.60.
• The company also authorized a $1.5 billion share repurchase program and declared a $0.43 quarterly dividend, while analysts currently rate the stock a “Moderate Buy” with a consensus target price of $152.77.

King Luther Capital Management Corp reduced its position in Xylem Inc. (NYSE:XYL - Free Report) by 1.0% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 989,274 shares of the industrial products company's stock after selling 9,655 shares during the period. King Luther Capital Management Corp owned approximately 0.41% of Xylem worth $134,719,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Schroder Investment Management Group lifted its position in 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 valued at $171,687,000 after purchasing an additional 1,137,342 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in 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 valued at $105,160,000 after purchasing an additional 553,152 shares in the last quarter. Adage Capital Partners GP L.L.C. purchased a new position in Xylem during the second quarter valued at $64,407,000. Jennison Associates LLC lifted its position in Xylem by 241.6% during the fourth quarter. Jennison Associates LLC now owns 633,648 shares of the industrial products company's stock valued at $86,290,000 after purchasing an additional 448,148 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in Xylem by 2,309.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company's stock valued at $54,314,000 after purchasing an additional 413,904 shares in the last quarter. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $117.46, for a total value of $501,436.74. Following the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the transaction, the director directly owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.32% of the stock is owned by insiders.

Xylem Price Performance

Shares of Xylem stock opened at $110.91 on Wednesday. The stock's 50-day simple moving average is $118.51 and its 200-day simple moving average is $130.48. Xylem Inc. has a 52 week low of $105.29 and a 52 week high of $154.27. The company has a market capitalization of $26.36 billion, a price-to-earnings ratio of 27.59, a PEG ratio of 1.57 and a beta of 1.08. 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 (NYSE:XYL - Get Free Report) last announced its quarterly earnings data 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 return on equity of 11.26% and a net margin of 10.79%.The business had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.11 billion. During the same period in the previous year, the business earned $1.03 earnings per share. The business's revenue was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, analysts expect that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.

Xylem announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 25th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.

Xylem Dividend Announcement

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

Wall Street Analysts Forecast Growth

XYL has been the topic of several analyst reports. Oppenheimer lowered their target price on Xylem from $160.00 to $158.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. Mizuho set a $138.00 target price on Xylem in a research report on Wednesday, February 11th. JPMorgan Chase & Co. lowered their target price on Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Robert W. Baird set a $161.00 target price on Xylem in a research report on Wednesday, February 11th. Finally, UBS Group lifted their target price on Xylem from $132.00 to $133.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Seven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus 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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