Night Squared LP Takes $5.94 Million Position in Xylem Inc. $XYL

Key Points

• Hedge fund Night Squared LP established a new position of 40,245 shares in Xylem worth about $5.94 million in Q3, making it the fund's 19th-largest holding and roughly 2.1% of its portfolio.
• Xylem reported Q earnings of $1.42 EPS (in line with estimates) with revenue up 6.3%, raised its quarterly dividend to $0.43 ($1.72 annual, 1.4% yield), and authorized a $1.5 billion share buyback (up to ~4.8% of shares).
• Analyst sentiment is generally positive with a consensus rating of “Moderate Buy” and an average price target of $158.08 (nine Buys vs. four Holds among covering analysts).

Night Squared LP bought a new position in shares of Xylem Inc. (NYSE:XYL - Free Report) in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 40,245 shares of the industrial products company's stock, valued at approximately $5,936,000. Xylem accounts for about 2.1% of Night Squared LP's holdings, making the stock its 19th largest holding.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Xylem by 0.7% during the 3rd quarter. Vanguard Group Inc. now owns 29,902,236 shares of the industrial products company's stock valued at $4,410,580,000 after acquiring an additional 204,407 shares during the last quarter. Geode Capital Management LLC lifted its position in Xylem by 2.3% during the 2nd quarter. Geode Capital Management LLC now owns 6,141,231 shares of the industrial products company's stock worth $791,029,000 after acquiring an additional 136,605 shares during the period. Amundi grew its stake in shares of Xylem by 17.0% in the 2nd quarter. Amundi now owns 5,714,576 shares of the industrial products company's stock valued at $730,717,000 after purchasing an additional 830,337 shares during the last quarter. Swedbank AB increased its holdings in shares of Xylem by 19.0% in the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company's stock valued at $766,669,000 after purchasing an additional 830,821 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of Xylem by 4.3% in the second quarter. Invesco Ltd. now owns 4,056,072 shares of the industrial products company's stock valued at $524,694,000 after purchasing an additional 166,959 shares during the period. Institutional investors and hedge funds own 87.96% of the company's stock.

Analysts Set New Price Targets

XYL has been the subject of several recent research reports. UBS Group reaffirmed a "buy" rating and set a $155.00 price target on shares of Xylem in a report on Friday, February 13th. Wall Street Zen cut shares of Xylem from a "buy" rating to a "hold" rating in a research note on Saturday, December 27th. Barclays cut their price objective 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. The Goldman Sachs Group set a $158.00 target price on shares of Xylem in a research note on Wednesday, February 11th. Finally, Oppenheimer set a $165.00 target price on shares of Xylem in a report on Thursday, February 12th. Nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $158.08.

Xylem Stock Down 0.1%

Xylem stock opened at $119.88 on Friday. The stock's 50 day moving average price is $133.97 and its 200 day moving average price is $139.90. Xylem Inc. has a 1-year low of $100.47 and a 1-year high of $154.27. The company has a market cap of $29.15 billion, a PE ratio of 30.58, a price-to-earnings-growth ratio of 1.72 and a beta of 1.17. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28.

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 (EPS) for the quarter, hitting the consensus estimate of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.During the same period in the previous year, the business earned $1.18 earnings per share. Xylem's revenue for the quarter was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. On average, sell-side analysts predict that Xylem Inc. will post 4.65 EPS for the current fiscal year.

Xylem Increases Dividend

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

Xylem announced that its board has initiated a share buyback plan on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the industrial products company to repurchase up to 4.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management 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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