Pinnacle Associates Ltd. Reduces Stake in Xylem Inc. $XYL

Key Points

• Pinnacle Associates Ltd. trimmed its Xylem stake by 3.4% in the fourth quarter, selling 10,153 shares and ending with 288,876 shares valued at about $39.3 million.
• Xylem’s latest earnings topped expectations, with EPS of $1.12 versus the $1.09 estimate and revenue of $2.13 billion, while quarterly revenue rose 2.7% year over year.
• The company also authorized a $1.5 billion share repurchase program, and analysts currently rate the stock a consensus “Moderate Buy” with an average price target of $152.77.

Pinnacle Associates Ltd. reduced its stake in Xylem Inc. (NYSE:XYL - Free Report) by 3.4% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 288,876 shares of the industrial products company's stock after selling 10,153 shares during the quarter. Pinnacle Associates Ltd. owned approximately 0.12% of Xylem worth $39,339,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Knuff & Co LLC purchased a new position in Xylem during the third quarter worth about $27,000. Wexford Capital LP purchased a new position in Xylem during the third quarter worth about $27,000. First Horizon Corp purchased a new position in Xylem during the third quarter worth about $30,000. Ramirez Asset Management Inc. raised its stake in Xylem by 100.0% during the third quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock worth $30,000 after purchasing an additional 100 shares during the period. Finally, Board of the Pension Protection Fund purchased a new position in Xylem in the fourth quarter worth approximately $27,000. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Xylem

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

Xylem Stock Performance

NYSE:XYL opened at $109.09 on Thursday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46. The stock has a market capitalization of $25.93 billion, a P/E ratio of 27.14, a PEG ratio of 1.59 and a beta of 1.08. The company has a 50 day moving average price of $121.18 and a 200 day moving average price of $133.10. Xylem Inc. has a fifty-two week low of $108.96 and a fifty-two week high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.03. The firm had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.11 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The firm's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the company posted $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities research analysts forecast that Xylem Inc. will post 5.51 EPS for the current year.

Xylem declared that its board has approved a stock 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 buy up to 4.8% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

XYL has been the subject of several analyst reports. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 8th. The Goldman Sachs Group set a $158.00 price objective on Xylem in a research report on Wednesday, February 11th. Oppenheimer lowered their price objective on Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Jefferies Financial Group restated a "hold" rating and issued a $130.00 price objective (down from $140.00) on shares of Xylem in a report on Tuesday, March 31st. Finally, William Blair started coverage on shares of Xylem in a report on Monday, January 26th. They issued an "outperform" rating on the stock. Seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $152.77.

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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