Varma Mutual Pension Insurance Co Purchases New Position in Xylem Inc. $XYL

Key Points

• Varma Mutual Pension Insurance Co purchased a new stake of 96,200 Xylem shares in Q4, valued at about $13.1 million.
• Xylem's board approved a $1.5 billion share buyback (up to ~4.8% of outstanding shares) and raised the quarterly dividend to $0.43 (annualized yield ~1.5%).
• Xylem beat Q1 estimates with $1.12 EPS on $2.13 billion revenue and set FY2026 guidance of 5.350–5.600 EPS (analysts' consensus ~5.51).

Varma Mutual Pension Insurance Co purchased a new stake in shares of Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 96,200 shares of the industrial products company's stock, valued at approximately $13,101,000.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of Xylem by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 30,054,743 shares of the industrial products company's stock valued at $4,092,855,000 after buying an additional 152,507 shares during the period. State Street Corp increased its position in shares of Xylem by 1.2% during the third quarter. State Street Corp now owns 10,953,206 shares of the industrial products company's stock valued at $1,615,598,000 after buying an additional 133,173 shares during the period. Northern Trust Corp increased its position in shares of Xylem by 1.6% during the third quarter. Northern Trust Corp now owns 3,259,233 shares of the industrial products company's stock valued at $480,737,000 after buying an additional 51,343 shares during the period. Legal & General Group Plc increased its position in shares of Xylem by 12.2% during the third quarter. Legal & General Group Plc now owns 2,029,272 shares of the industrial products company's stock valued at $299,318,000 after buying an additional 220,246 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in shares of Xylem by 9.2% during the third quarter. Dimensional Fund Advisors LP now owns 2,019,807 shares of the industrial products company's stock valued at $297,857,000 after buying an additional 169,688 shares during the period. Hedge funds and other institutional investors own 87.96% of the company's stock.

Insider Activity at Xylem

In other news, Director Jerome A. Peribere purchased 1,210 shares of the business's stock in a transaction dated Monday, May 4th. The shares were purchased at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the acquisition, the director directly owned 27,209 shares in the company, valued at $3,172,841.49. This represents a 4.65% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.32% of the stock is currently owned by insiders.

Xylem Price Performance

Shares of XYL opened at $114.94 on Tuesday. The stock has a market cap of $27.32 billion, a PE ratio of 28.59, a price-to-earnings-growth ratio of 1.64 and a beta of 1.08. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46. Xylem Inc. has a fifty-two week low of $114.15 and a fifty-two week high of $154.27. The firm's 50-day simple moving average is $123.29 and its two-hundred day simple moving average is $134.70.

Xylem (NYSE:XYL - Get Free Report) last announced 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. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business had revenue of $2.13 billion for the quarter, compared to analysts' expectations of $2.11 billion. During the same quarter in the prior year, the company earned $1.03 earnings per share. The business's revenue was up 2.7% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Analysts anticipate that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.

Xylem announced that its board has approved a share buyback 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 leadership believes its stock is undervalued.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were issued a dividend of $0.43 per share. The ex-dividend date was Tuesday, February 24th. This is a positive change from Xylem's previous quarterly dividend of $0.40. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.5%. Xylem's dividend payout ratio is currently 42.79%.

Analyst Ratings Changes

XYL has been the topic of several research analyst reports. Oppenheimer reduced their price target on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating on the stock 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. Weiss Ratings cut shares of Xylem from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, April 6th. Royal Bank Of Canada cut their price objective on shares of Xylem from $176.00 to $162.00 and set an "outperform" rating on the stock in a report on Wednesday, February 11th. Finally, UBS Group upped their price objective on shares of Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price 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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