Pinnacle Associates Ltd. Decreases Stock Holdings in Xylem Inc. $XYL

Key Points

• Pinnacle Associates Ltd. reduced its stake in Xylem by 4.9% in Q3, selling 15,352 shares and ending the period with 299,029 shares (about 0.12% of the company) worth roughly $44.11 million; institutional investors own about 87.96% of the stock.
• Xylem announced a $1.50 billion share buyback program (up to 4.8% of outstanding shares) and raised its quarterly dividend to $0.43 ($1.72 annualized, yield 1.4%, DPR 43.88%).
• The company reported Q results of $1.42 EPS (in line with estimates) with revenue up 6.3% YoY, set FY2026 guidance of 5.350–5.560 EPS, and carries a consensus "Moderate Buy" analyst rating with an average target of $158.08.

Pinnacle Associates Ltd. reduced its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 4.9% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 299,029 shares of the industrial products company's stock after selling 15,352 shares during the period. Pinnacle Associates Ltd. owned approximately 0.12% of Xylem worth $44,107,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. SJS Investment Consulting Inc. lifted its holdings in shares of Xylem by 1,844.4% in the 3rd quarter. SJS Investment Consulting Inc. now owns 175 shares of the industrial products company's stock valued at $26,000 after acquiring an additional 166 shares during the last quarter. First Horizon Corp bought a new stake in Xylem during the third quarter worth approximately $30,000. Ramirez Asset Management Inc. raised its position in Xylem by 100.0% during the third quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 100 shares during the period. Grey Fox Wealth Advisors LLC purchased a new stake in Xylem during the third quarter valued at approximately $34,000. Finally, Caldwell Trust Co bought a new stake in shares of Xylem in the 2nd quarter valued at approximately $41,000. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Xylem Price Performance

Xylem stock 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 stock 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. The firm has a 50-day moving average of $135.51 and a two-hundred day moving average of $140.60. Xylem Inc. has a 1 year low of $100.47 and a 1 year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, meeting the consensus estimate 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 earnings per share. The firm'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. On average, research analysts forecast that Xylem Inc. will post 4.65 earnings per share for the current year.

Xylem Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Shareholders 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 annualized dividend and a dividend yield of 1.4%. This is a positive change from Xylem's previous quarterly dividend of $0.40. Xylem's dividend payout ratio (DPR) is currently 43.88%.

Xylem declared that its Board of Directors has approved a stock repurchase plan 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 reacquire up to 4.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

Several analysts recently weighed in on the company. The Goldman Sachs Group set a $158.00 price target on Xylem in a report on Wednesday, February 11th. UBS Group reiterated a "buy" rating and set a $155.00 price target on shares of Xylem in a report on Friday, February 13th. Wall Street Zen lowered shares of Xylem from a "buy" rating to a "hold" rating in a research report on Saturday, December 27th. Stifel Nicolaus dropped their target price on Xylem from $178.00 to $175.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. Finally, Oppenheimer set a $165.00 target price on Xylem in a research note on Thursday, February 12th. Nine research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $158.08.

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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