Victory Capital Management Inc. Sells 22,894 Shares of Xylem Inc. $XYL

Key Points

• Victory Capital Management trimmed its Xylem stake by 0.8% in the fourth quarter, selling 22,894 shares but still holding 2.8 million shares valued at about $381.4 million.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 versus $1.09 expected and revenue of $2.13 billion, while also raising its FY 2026 EPS guidance to 5.35–5.60.
• The company announced a $1.5 billion share buyback and a quarterly dividend of $0.43 per share, which annualizes to $1.72 and yields about 1.6%.

Victory Capital Management Inc. reduced its stake in Xylem Inc. (NYSE:XYL - Free Report) by 0.8% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,800,517 shares of the industrial products company's stock after selling 22,894 shares during the period. Victory Capital Management Inc. owned 1.15% of Xylem worth $381,374,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Fisher Asset Management LLC grew its holdings in shares of Xylem by 6.4% during the third quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company's stock valued at $59,681,000 after buying an additional 24,352 shares during the last quarter. LGT Capital Partners LTD. boosted its holdings in Xylem by 18.4% during the third quarter. LGT Capital Partners LTD. now owns 268,704 shares of the industrial products company's stock worth $39,634,000 after purchasing an additional 41,730 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Xylem by 2,309.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company's stock worth $54,314,000 after purchasing an additional 413,904 shares during the last quarter. Boston Common Asset Management LLC boosted its holdings in Xylem by 15.3% during the fourth quarter. Boston Common Asset Management LLC now owns 143,740 shares of the industrial products company's stock worth $19,575,000 after purchasing an additional 19,073 shares during the last quarter. Finally, Abacus Wealth Partners LLC purchased a new position in Xylem during the fourth quarter worth about $1,663,000. 87.96% of the stock is currently owned by institutional investors and hedge funds.

Xylem Trading Up 0.8%

Shares of XYL opened at $109.92 on Friday. The business has a 50-day moving average of $115.78 and a 200 day moving average of $127.35. Xylem Inc. has a fifty-two week low of $105.29 and a fifty-two week high of $154.27. The firm has a market cap of $26.13 billion, a P/E ratio of 27.34, a price-to-earnings-growth ratio of 1.55 and a beta of 1.04. 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 (NYSE:XYL - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.03. The company had revenue of $2.13 billion for 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%. Xylem's revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company posted $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, 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 buyback $1.50 billion in outstanding shares. This buyback authorization allows the industrial products company to reacquire up to 4.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its shares are undervalued.

Xylem Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, May 28th will be issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, May 28th. Xylem's dividend payout ratio is 42.79%.

Insider Buying and Selling

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of the stock in a transaction 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 transaction, the chief accounting officer owned 3,605 shares of the company's stock, valued at $423,443.30. This represents a 54.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Jerome A. Peribere purchased 1,210 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was bought at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the acquisition, the director directly owned 27,209 shares in the company, valued at approximately $3,172,841.49. The trade was a 4.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.32% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently weighed in on XYL shares. Citigroup cut their price target on shares of Xylem from $174.00 to $168.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. JPMorgan Chase & Co. cut their price target on shares of Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a report on Thursday, April 16th. Weiss Ratings cut shares of Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. Barclays cut their price target on shares of Xylem from $156.00 to $154.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, UBS Group lifted their price objective on shares of Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Seven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $152.77.

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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