MUFG Securities EMEA plc Raises Stake in Xylem Inc. $XYL

Key Points

• MUFG Securities EMEA plc boosted its stake in Xylem by 608.1% in the fourth quarter, ending with 32,990 shares worth about $4.49 million.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 on revenue of $2.13 billion, and it reaffirmed FY 2026 guidance of 5.35 to 5.60 EPS.
• The company also approved a $1.5 billion share repurchase program and declared a quarterly dividend of $0.43 per share, while analysts maintain a Moderate Buy consensus with a target price of $152.77.

MUFG Securities EMEA plc lifted its position in shares of Xylem Inc. (NYSE:XYL - Free Report) by 608.1% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 32,990 shares of the industrial products company's stock after buying an additional 28,331 shares during the quarter. MUFG Securities EMEA plc's holdings in Xylem were worth $4,493,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Fisher Asset Management LLC grew its holdings in shares of 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 buying an additional 24,352 shares in the last quarter. LGT Capital Partners LTD. grew its holdings in shares of 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 buying an additional 41,730 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of 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 worth $54,314,000 after buying an additional 413,904 shares in the last quarter. ABN AMRO Bank N.V. grew its holdings in shares of Xylem by 2.3% during the third quarter. ABN AMRO Bank N.V. now owns 1,637,096 shares of the industrial products company's stock worth $240,511,000 after buying an additional 36,992 shares in the last quarter. Finally, Abacus Wealth Partners LLC purchased a new stake in shares of Xylem during the fourth quarter worth about $1,663,000. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Xylem

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the transaction, the chief accounting officer directly owned 3,605 shares of the company's stock, valued at approximately $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jerome A. Peribere bought 1,210 shares of Xylem stock in a transaction dated Monday, May 4th. The shares were purchased at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the transaction, the director owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This represents a 4.65% increase in their position. The SEC filing for this purchase provides additional information. 0.32% of the stock is owned by insiders.

Xylem Price Performance

XYL opened at $109.58 on Monday. 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 52-week low of $105.29 and a 52-week high of $154.27. The company has a 50 day moving average of $117.84 and a two-hundred day moving average of $129.61. The company has a market cap of $26.05 billion, a P/E ratio of 27.26, a P/E/G ratio of 1.56 and a beta of 1.05.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, topping 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 company had revenue of $2.13 billion during the quarter, compared to the consensus estimate of $2.11 billion. During the same period in the previous year, the firm earned $1.03 earnings per share. Xylem's revenue for the quarter was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, analysts expect that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem declared that its board has approved a share repurchase program on Wednesday, February 25th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are usually an indication 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. Shareholders of record on Thursday, May 28th will be paid a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a yield of 1.6%. The ex-dividend date is Thursday, May 28th. Xylem's payout ratio is currently 42.79%.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on XYL shares. Barclays lowered their price target on shares of Xylem from $156.00 to $154.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Oppenheimer lowered their target price on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. Citigroup lowered their target price on shares of Xylem from $174.00 to $168.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. The Goldman Sachs Group set a $158.00 target price on shares of Xylem in a report on Wednesday, February 11th. Finally, Robert W. Baird set a $161.00 target price on shares of Xylem in a report on Wednesday, February 11th. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target 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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