Neuberger Berman Group LLC Raises Holdings in Xylem Inc. $XYL

Key Points

• Neuberger Berman Group LLC boosted its stake in Xylem by 65.6% to 229,548 shares, now owning about 0.09% of the company worth roughly $33.86 million, and institutional investors hold about 87.96% of the stock.
• Xylem reported Q earnings of $1.42 EPS (in line with estimates) with revenue up 6.3% year-over-year and set FY2026 guidance of 5.350–5.560 EPS, while analysts' consensus is a "Moderate Buy" with an average target of $158.08.
• The board increased shareholder returns by raising the quarterly dividend to $0.43 (annualized $1.72, 1.4% yield) and approving a $1.50 billion share buyback program (up to 4.8% of shares).

Neuberger Berman Group LLC lifted its stake in Xylem Inc. (NYSE:XYL - Free Report) by 65.6% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 229,548 shares of the industrial products company's stock after purchasing an additional 90,893 shares during the quarter. Neuberger Berman Group LLC owned about 0.09% of Xylem worth $33,858,000 as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. AQR Capital Management LLC grew its holdings in shares of Xylem by 14.4% during the first quarter. AQR Capital Management LLC now owns 30,955 shares of the industrial products company's stock valued at $3,645,000 after buying an additional 3,900 shares during the last quarter. NewEdge Advisors LLC raised its stake in Xylem by 3.3% in the 1st quarter. NewEdge Advisors LLC now owns 4,151 shares of the industrial products company's stock worth $496,000 after acquiring an additional 132 shares during the last quarter. Empowered Funds LLC lifted its position in Xylem by 56.1% during the 1st quarter. Empowered Funds LLC now owns 8,678 shares of the industrial products company's stock worth $1,037,000 after acquiring an additional 3,120 shares during the period. Y Intercept Hong Kong Ltd purchased a new stake in Xylem during the 2nd quarter valued at about $354,000. Finally, Assetmark Inc. grew its stake in Xylem by 379.7% during the 2nd quarter. Assetmark Inc. now owns 921 shares of the industrial products company's stock valued at $119,000 after purchasing an additional 729 shares during the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

Xylem Price Performance

NYSE:XYL opened at $123.16 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28. The company has a 50 day moving average price of $135.51 and a 200-day moving average price of $140.60. Xylem Inc. has a 1-year low of $100.47 and a 1-year high of $154.27. The firm has a market cap of $29.95 billion, a price-to-earnings ratio of 31.42, a price-to-earnings-growth ratio of 1.76 and a beta of 1.17.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same quarter in the prior year, the firm earned $1.18 EPS. Xylem's revenue was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Equities research analysts forecast that Xylem Inc. will post 4.65 EPS for the current year.

Xylem Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th will be issued a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Tuesday, February 24th. This is a positive change from Xylem's previous quarterly dividend of $0.40. Xylem's payout ratio is currently 43.88%.

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

Wall Street Analyst Weigh In

XYL has been the subject of a number of research reports. Wall Street Zen downgraded Xylem from a "buy" rating to a "hold" rating in a report on Saturday, December 27th. Barclays reduced their price target on shares of Xylem from $166.00 to $156.00 and set an "overweight" rating for the company in a research report on Wednesday, February 11th. Mizuho set a $138.00 price objective on shares of Xylem in a research note on Wednesday, February 11th. Weiss Ratings restated a "buy (b-)" rating on shares of Xylem in a research report on Monday, December 29th. Finally, Citigroup cut their price target on Xylem from $182.00 to $174.00 and set a "buy" rating on the stock in a research report on Wednesday, February 11th. Nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $158.08.

About Xylem

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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