Sumitomo Mitsui Trust Group Inc. Lowers Stake in Xylem Inc. $XYL

Key Points

• Sumitomo Mitsui Trust Group trimmed its stake in Xylem by 3.5% in Q4, selling 21,620 shares and finishing with 600,388 shares (about 0.25% of the company worth $81.76M); institutional investors now own roughly 87.96% of XYL.
• Xylem authorized a $1.50 billion share buyback (up to 4.8% of shares) and raised its quarterly dividend to $0.43 (annualized $1.72, yield 1.3%), indicating board confidence in the shares.
• The company reported Q EPS of $1.42, meeting estimates with revenue up 6.3% YoY, set FY2026 guidance of 5.350–5.560 EPS, and carries a consensus analyst rating of "Moderate Buy" with a $154.38 target.

Sumitomo Mitsui Trust Group Inc. lessened its stake in shares of Xylem Inc. (NYSE:XYL - Free Report) by 3.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 600,388 shares of the industrial products company's stock after selling 21,620 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.25% of Xylem worth $81,761,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in XYL. AQR Capital Management LLC grew its stake in Xylem by 14.4% in the first quarter. AQR Capital Management LLC now owns 30,955 shares of the industrial products company's stock valued at $3,645,000 after purchasing an additional 3,900 shares during the last quarter. NewEdge Advisors LLC lifted its position in shares of Xylem by 3.3% during the first quarter. NewEdge Advisors LLC now owns 4,151 shares of the industrial products company's stock valued at $496,000 after buying an additional 132 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of Xylem by 56.1% in the 1st quarter. Empowered Funds LLC now owns 8,678 shares of the industrial products company's stock valued at $1,037,000 after buying an additional 3,120 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Xylem by 97.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 11,151 shares of the industrial products company's stock valued at $1,442,000 after buying an additional 5,509 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in shares of Xylem by 114.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,192 shares of the industrial products company's stock worth $154,000 after buying an additional 635 shares during the last quarter. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Xylem Price Performance

NYSE:XYL opened at $129.68 on Wednesday. The firm's fifty day moving average is $125.99 and its two-hundred day moving average is $136.93. The firm has a market cap of $31.53 billion, a price-to-earnings ratio of 33.08, a PEG ratio of 1.85 and a beta of 1.18. 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 Inc. has a one year low of $107.04 and a one year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, meeting 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 period in the previous year, the firm posted $1.18 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Research analysts expect that Xylem Inc. will post 4.65 EPS for the current year.

Xylem declared that its board has authorized a stock repurchase plan on Wednesday, February 25th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Xylem Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th were given a $0.43 dividend. The ex-dividend date was Tuesday, February 24th. This represents a $1.72 annualized dividend and a yield of 1.3%. This is a boost from Xylem's previous quarterly dividend of $0.40. Xylem's payout ratio is currently 43.88%.

Analyst Ratings Changes

Several research firms recently commented on XYL. UBS Group reduced their price objective on shares of Xylem from $155.00 to $152.00 and set a "buy" rating for the company in a research note on Thursday, April 9th. TD Cowen reaffirmed a "hold" rating on shares of Xylem in a report on Monday, February 23rd. Wall Street Zen downgraded Xylem from a "buy" rating to a "hold" rating in a research report on Saturday, December 27th. The Goldman Sachs Group set a $158.00 price objective on Xylem in a report on Wednesday, February 11th. Finally, Barclays lowered their price objective on Xylem from $166.00 to $156.00 and set an "overweight" rating for the company in a research report on Wednesday, February 11th. Nine research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $154.38.

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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