Oak Thistle LLC Acquires New Stake in Xylem Inc. $XYL

Key Points

• Oak Thistle LLC acquired a new stake in Xylem (NYSE:XYL) of 27,328 shares valued at about $3.72 million, representing 0.5% of its holdings and the firm's 13th-largest position.
• Xylem's board authorized a $1.50 billion share-repurchase program (up to 4.8% of shares) and raised the quarterly dividend to $0.43 (annualized $1.72, ~1.4% yield), signaling a focus on shareholder returns.
• Institutional investors own roughly 87.96% of Xylem; several large funds materially increased positions (e.g., Schroder up 2,055% to 1,192,682 shares), and analysts' consensus is a "Moderate Buy" with a target of $155.54.

Oak Thistle LLC acquired a new stake in Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 27,328 shares of the industrial products company's stock, valued at approximately $3,722,000. Xylem accounts for 0.5% of Oak Thistle LLC's holdings, making the stock its 13th biggest holding.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Schroder Investment Management Group increased its holdings in Xylem by 2,055.2% during the 3rd quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company's stock worth $171,687,000 after purchasing an additional 1,137,342 shares during the period. Swedbank AB increased its holdings in Xylem by 19.0% during the 3rd quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company's stock worth $766,669,000 after purchasing an additional 830,821 shares during the period. Voya Investment Management LLC increased its holdings in Xylem by 544.0% during the 3rd quarter. Voya Investment Management LLC now owns 868,755 shares of the industrial products company's stock worth $128,141,000 after purchasing an additional 733,860 shares during the period. Balyasny Asset Management L.P. increased its holdings in Xylem by 346.2% during the 3rd quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company's stock worth $105,160,000 after purchasing an additional 553,152 shares during the period. Finally, Adage Capital Partners GP L.L.C. purchased a new stake in Xylem during the 2nd quarter worth about $64,407,000. Hedge funds and other institutional investors own 87.96% of the company's stock.

Wall Street Analysts Forecast Growth

XYL has been the topic of several recent research reports. Jefferies Financial Group restated a "hold" rating and set a $130.00 price target (down from $140.00) on shares of Xylem in a report on Tuesday, March 31st. Mizuho set a $138.00 price objective on Xylem in a research report on Wednesday, February 11th. Citigroup lowered their price objective on Xylem from $182.00 to $174.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. TD Cowen reaffirmed a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Finally, William Blair initiated coverage on Xylem in a research report on Monday, January 26th. They set an "outperform" rating for the company. Nine analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Xylem currently has an average rating of "Moderate Buy" and a consensus target price of $155.54.

Xylem Trading Up 0.3%

NYSE:XYL opened at $124.26 on Wednesday. The stock has a 50-day simple moving average of $126.89 and a 200-day simple moving average of $137.41. The stock has a market cap of $30.21 billion, a P/E ratio of 31.70, a P/E/G ratio of 1.74 and a beta of 1.18. Xylem Inc. has a 1 year low of $100.72 and a 1 year high of $154.27. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62.

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%.The company's revenue was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.18 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, analysts anticipate that Xylem Inc. will post 4.65 earnings per share for the current fiscal year.

Xylem Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were given a $0.43 dividend. This is a boost from Xylem's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.4%. Xylem's payout ratio is currently 43.88%.

Xylem announced that its Board of Directors has initiated a share repurchase plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

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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