Rakuten Investment Management Inc. Makes New $4.58 Million Investment in Xylem Inc. $XYL

Key Points

• Rakuten Investment Management acquired 39,191 Xylem shares worth approximately $4.58 million during the second quarter. Institutional investors collectively own 87.96% of the company.
• Xylem exceeded quarterly earnings expectations, reporting $1.46 in EPS versus the $1.34 consensus estimate, while revenue rose 1.5% year over year to $2.34 billion.
• The company declared a quarterly dividend of $0.43 per share, equivalent to an annualized $1.72 payout and a 1.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $155.

Rakuten Investment Management Inc. acquired a new position in Xylem Inc. (NYSE:XYL - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 39,191 shares of the industrial products company's stock, valued at approximately $4,575,000.

Several other hedge funds have also recently made changes to their positions in XYL. XXEC Inc. purchased a new position in shares of Xylem during the second quarter valued at about $850,841,000. J. Stern & Co. LLP lifted its holdings in Xylem by 12,326.6% in the fourth quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company's stock worth $6,189,132,000 after buying an additional 45,082,435 shares during the period. BlackRock Inc. purchased a new stake in Xylem in the second quarter worth about $2,959,730,000. Bank of New York Mellon Corp bought a new stake in Xylem during the 2nd quarter valued at approximately $552,313,000. Finally, Hsbc Holdings PLC bought a new stake in Xylem during the 2nd quarter valued at approximately $319,785,000. 87.96% of the stock is owned by hedge funds and other institutional investors.

Xylem Stock Performance

Shares of XYL opened at $111.44 on Monday. The company has a quick ratio of 1.24, a current ratio of 1.61 and a debt-to-equity ratio of 0.23. The stock has a market cap of $26.02 billion, a P/E ratio of 26.53, a P/E/G ratio of 1.64 and a beta of 1.02. The business's 50 day moving average price is $118.20 and its 200-day moving average price is $118.72. Xylem Inc. has a 52 week low of $105.29 and a 52 week high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.12. Xylem had a net margin of 11.15% and a return on equity of 11.77%. The company had revenue of $2.34 billion for the quarter, compared to analysts' expectations of $2.34 billion. During the same quarter in the previous year, the business posted $1.26 EPS. Xylem's revenue was up 1.5% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. Equities research analysts anticipate that Xylem Inc. will post 5.66 earnings per share for the current fiscal year.

Xylem Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, August 27th will be issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, August 27th. Xylem's dividend payout ratio is presently 40.95%.

Analyst Ratings Changes

Several brokerages have recently issued reports on XYL. Mizuho increased their target price on Xylem from $124.00 to $130.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Citigroup restated a "buy" rating on shares of Xylem in a research report on Wednesday, July 29th. CLSA raised Xylem to a "hold" rating in a research note on Thursday, June 25th. Royal Bank Of Canada increased their price objective on Xylem from $159.00 to $164.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Finally, UBS Group raised their price objective on Xylem from $135.00 to $138.00 and gave the company a "neutral" rating in a research report on Thursday, August 13th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $155.00.

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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