Xylem Inc. $XYL Shares Bought by AlphaQuest LLC

Key Points

• AlphaQuest LLC increased its Xylem stake by 399.1% in the fourth quarter, buying 25,256 additional shares and bringing its total holding to 31,585 shares valued at about $4.3 million.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 versus the $1.09 estimate and revenue of $2.13 billion, while also guiding FY 2026 EPS to 5.35-5.60.
• The company announced a $1.5 billion share buyback and a quarterly dividend of $0.43 per share, with analysts maintaining a Moderate Buy consensus and a $152.77 average price target.

AlphaQuest LLC raised its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 399.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 31,585 shares of the industrial products company's stock after purchasing an additional 25,256 shares during the period. Xylem comprises 0.2% of AlphaQuest LLC's holdings, making the stock its 27th largest position. AlphaQuest LLC's holdings in Xylem were worth $4,301,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Xylem by 0.5% in 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 purchasing an additional 152,507 shares during the period. State Street Corp grew its holdings in Xylem by 1.2% in 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 purchasing an additional 133,173 shares during the period. Swedbank AB grew its holdings in Xylem by 6.0% in the fourth quarter. Swedbank AB now owns 5,507,966 shares of the industrial products company's stock valued at $750,075,000 after purchasing an additional 310,213 shares during the period. Northern Trust Corp grew its holdings in Xylem by 1.6% in 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 purchasing an additional 51,343 shares during the period. Finally, Legal & General Group Plc grew its holdings in Xylem by 12.2% in 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 purchasing an additional 220,246 shares during the period. 87.96% of the stock is owned by institutional investors and hedge funds.

Xylem Stock Performance

Shares of Xylem stock opened at $110.41 on Tuesday. Xylem Inc. has a 52 week low of $105.29 and a 52 week high of $154.27. The business's fifty day simple moving average is $118.69 and its 200-day simple moving average is $130.76. The firm has a market cap of $26.24 billion, a PE ratio of 27.46, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13.

Xylem (NYSE:XYL - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.03. The firm had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The company's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities analysts forecast that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem announced that its Board of Directors has authorized a stock buyback program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 4.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Xylem Dividend Announcement

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

Insider Buying and Selling at Xylem

In other news, Director Jerome A. Peribere acquired 1,210 shares of the business's stock in a transaction that occurred on 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 acquisition, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the business's 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 completion of the sale, the chief accounting officer owned 3,605 shares in the company, valued at $423,443.30. This represents 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 insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on XYL. Jefferies Financial Group reaffirmed a "hold" rating and issued a $130.00 price target (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. Stifel Nicolaus lowered their price target on Xylem from $163.00 to $159.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. TD Cowen reaffirmed a "hold" rating on shares of Xylem in a research note on Monday, February 23rd. UBS Group lifted their price target on Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Finally, The Goldman Sachs Group set a $158.00 price objective on Xylem in a research report on Wednesday, February 11th. 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.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target 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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