Reflection Asset Management Buys New Shares in Xylem Inc. $XYL

Key Points

• Reflection Asset Management opened a new position in Xylem, buying 11,785 shares worth about $1.6 million in the fourth quarter. The stake represents roughly 1.1% of the fund’s portfolio.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 versus estimates of $1.09 and revenue of $2.12 billion slightly ahead of forecasts. The company also raised guidance for FY 2026 to $5.35-$5.60 EPS.
• The company continues to reward shareholders with a quarterly dividend of $0.43 per share and an authorized $1.5 billion share repurchase program. Analysts currently rate the stock a Moderate Buy with an average price target of $152.77.

Reflection Asset Management purchased a new stake in shares of Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 11,785 shares of the industrial products company's stock, valued at approximately $1,605,000. Xylem accounts for approximately 1.1% of Reflection Asset Management's portfolio, making the stock its 20th largest holding.

Several other large investors have also recently added to or reduced their stakes in XYL. J. Stern & Co. LLP lifted its position in shares of Xylem by 12,326.6% in the 4th quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company's stock worth $6,189,132,000 after acquiring an additional 45,082,435 shares during the period. Norges Bank bought a new stake in shares of Xylem during the fourth quarter valued at approximately $361,012,000. Schroder Investment Management Group raised its stake in shares of Xylem by 2,055.2% in the third quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company's stock valued at $171,687,000 after purchasing an additional 1,137,342 shares in the last quarter. Balyasny Asset Management L.P. lifted its position in Xylem by 346.2% in the third 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. bought a new position in Xylem in the second quarter worth $64,407,000. Institutional investors and hedge funds own 87.96% of the company's stock.

Xylem Stock Performance

Xylem stock opened at $111.44 on Friday. The firm has a market capitalization of $26.49 billion, a P/E ratio of 27.72, a P/E/G ratio of 1.59 and a beta of 1.04. The stock has a fifty day moving average price of $114.53 and a two-hundred day moving average price of $126.30. Xylem Inc. has a 52-week low of $105.29 and a 52-week high of $154.27. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10.

Xylem (NYSE:XYL - Get Free Report) last issued its earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating the consensus estimate of $1.09 by $0.03. The company had revenue of $2.12 billion for the quarter, compared to the consensus estimate of $2.11 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, analysts anticipate that Xylem Inc. will post 5.51 EPS for the current fiscal year.

Xylem Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th will be given a $0.43 dividend. The ex-dividend date is Thursday, May 28th. This represents a $1.72 dividend on an annualized basis and a yield of 1.5%. Xylem's payout ratio is 42.79%.

Xylem declared that its board has approved a share repurchase program on Wednesday, February 25th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the industrial products company to buy up to 4.8% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on XYL. Stifel Nicolaus lowered their price target on shares of Xylem from $163.00 to $159.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Weiss Ratings downgraded shares of Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. UBS Group lifted their target price on shares of Xylem from $132.00 to $133.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Oppenheimer dropped their price target on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. cut their price target on shares of Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $152.77.

Insider Activity

In other news, Director Jerome A. Peribere acquired 1,210 shares of the firm's stock in a transaction on Monday, May 4th. The shares were purchased at an average cost of $116.61 per share, with a total value of $141,098.10. Following the completion of the purchase, the director owned 27,209 shares of the company's stock, valued at $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the sale, the chief accounting officer directly owned 3,605 shares of the company's stock, valued at approximately $423,443.30. The trade was a 54.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.32% of the stock is currently owned by corporate insiders.

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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