Xylem Inc. $XYL Stake Lifted by Cincinnati Insurance Co.

Key Points

• Cincinnati Insurance Co. increased its Xylem stake by 12.4% in the third quarter, adding 40,000 shares to reach 361,700 shares, valued at about $36.6 million. Institutional investors and hedge funds own nearly 88% of the stock.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $121.31; several firms recently cut their targets or downgraded the stock.
• Xylem’s latest quarter fell slightly short of expectations: EPS was $1.44 versus $1.45 expected, and revenue of $2.20 billion was below forecasts and down 3% year over year. A company director separately bought 11,000 shares for about $986,000.

Cincinnati Insurance Co. boosted its holdings in Xylem Inc. (NYSE:XYL - Free Report) by 12.4% in the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 361,700 shares of the industrial products company's stock after purchasing an additional 40,000 shares during the period. Cincinnati Insurance Co. owned about 0.16% of Xylem worth $36,629,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently bought and sold shares of the business. William Mack & Associates Inc. purchased a new position in shares of Xylem during the 3rd quarter valued at approximately $25,000. Dunhill Financial LLC acquired a new stake in shares of Xylem during the second quarter worth approximately $30,000. Avalon Trust Co bought a new stake in shares of Xylem in the second quarter worth $35,000. Orion Capital Management LLC bought a new stake in shares of Xylem in the second quarter worth $35,000. Finally, Aventus Investment Advisors Inc. raised its holdings in Xylem by 66.7% in the second quarter. Aventus Investment Advisors Inc. now owns 300 shares of the industrial products company's stock valued at $35,000 after acquiring an additional 120 shares in the last quarter. Institutional investors and hedge funds own 87.96% of the company's stock.

Analysts Set New Price Targets

Several research analysts have weighed in on XYL shares. Royal Bank Of Canada decreased their price objective on shares of Xylem from $135.00 to $125.00 and set an "outperform" rating for the company in a report on Wednesday, October 28th. JPMorgan Chase & Co. lowered shares of Xylem from an "overweight" rating to a "neutral" rating and cut their target price for the company from $118.00 to $90.00 in a research note on Wednesday, October 28th. Argus lowered shares of Xylem from a "buy" rating to a "hold" rating in a research note on Wednesday. Zacks Research cut shares of Xylem from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 29th. Finally, UBS Group decreased their price target on Xylem from $112.00 to $99.00 and set a "neutral" rating for the company in a research note on Thursday, October 29th. Nine analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $121.31.

Insider Transactions at Xylem

In related news, Director D Koch bought 11,000 shares of the firm's stock in a transaction on Thursday, October 29th. The stock was bought at an average cost of $89.60 per share, for a total transaction of $985,600.00. Following the completion of the purchase, the director directly owned 12,247 shares in the company, valued at approximately $1,097,331.20. The trade was a 882.12% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.32% of the stock is owned by corporate insiders.

Xylem Stock Performance

Xylem stock opened at $97.88 on Friday. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.39 and a quick ratio of 1.02. Xylem Inc. has a 12 month low of $87.40 and a 12 month high of $152.15. The company has a fifty day moving average price of $103.56 and a two-hundred day moving average price of $116.48. The company has a market cap of $22.45 billion, a PE ratio of 21.65, a P/E/G ratio of 1.63 and a beta of 1.01.

Xylem (NYSE:XYL - Get Free Report) last issued its earnings results on Tuesday, October 27th. The industrial products company reported $1.44 earnings per share for the quarter, missing analysts' consensus estimates of $1.45 by ($0.01). Xylem had a return on equity of 12.06% and a net margin of 11.94%. The business had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.28 billion. During the same period last year, the company posted $1.37 earnings per share. The firm's revenue for the quarter was down 3.0% on a year-over-year basis. Research analysts expect that Xylem Inc. will post 5.45 earnings per share for the current year.

Xylem Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, August 27th were issued a $0.43 dividend. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $1.72 dividend on an annualized basis and a yield of 1.8%. Xylem's dividend payout ratio (DPR) is currently 38.05%.

Xylem Company Profile

Xylem Inc is a water technology company that develops equipment, software and services for managing water and wastewater. Its offerings include pumps and treatment systems, water-quality testing and analysis, smart meters, monitoring and control technologies, and services for detecting leaks and maintaining water infrastructure.

The company serves water and wastewater utilities, industrial and commercial customers, and residential markets. Its technologies support the movement, treatment, testing and efficient use of water across municipal and industrial systems.

Xylem was established in 2011 when it became an independent company following its spin-off from ITT Corporation.

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