Xylem Sees Unusually Large Options Volume (NYSE:XYL)

Key Points

• Xylem saw unusually high options activity, with traders purchasing 10,088 call options—approximately 579% above the average call volume of 1,486.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $155, while Xylem shares traded at $108.07. Recent quarterly results exceeded expectations, with EPS of $1.46 versus the $1.34 consensus estimate.
• Xylem declared a quarterly dividend of $0.43 per share, representing a $1.72 annualized payout and a 1.6% yield. Institutional investors own approximately 87.96% of the company.

Xylem Inc. (NYSE:XYL - Get Free Report) saw unusually large options trading on Monday. Traders bought 10,088 call options on the company. This is an increase of approximately 579% compared to the average volume of 1,486 call options.

Analysts Set New Price Targets

A number of research firms recently issued reports on XYL. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Xylem in a report on Wednesday, August 5th. Royal Bank Of Canada raised their price objective on shares of Xylem from $159.00 to $164.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. CLSA raised shares of Xylem to a "hold" rating in a research note on Thursday, June 25th. UBS Group increased their price target on shares of Xylem from $135.00 to $138.00 and gave the company a "neutral" rating in a research note on Thursday, August 13th. Finally, Barclays raised their price target on shares of Xylem from $154.00 to $159.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $155.00.

Xylem Trading Up 1.0%

XYL traded up $1.11 during trading on Monday, reaching $108.07. 767,643 shares of the company's stock were exchanged, compared to its average volume of 2,013,220. The company's fifty day moving average price is $116.53 and its 200-day moving average price is $117.25. The firm has a market capitalization of $25.23 billion, a PE ratio of 25.76, a P/E/G ratio of 1.72 and a beta of 1.00. Xylem has a fifty-two week low of $105.29 and a fifty-two week high of $154.27. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.24 and a current ratio of 1.61.

Xylem (NYSE:XYL - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.34 by $0.12. The business had revenue of $2.34 billion for the quarter, compared to analyst estimates of $2.34 billion. Xylem had a return on equity of 11.77% and a net margin of 11.15%.The firm's revenue was up 1.5% on a year-over-year basis. During the same period last year, the company earned $1.26 EPS. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. As a group, equities analysts forecast that Xylem will post 5.66 EPS for the current year.

Xylem Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 27th will be paid a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, August 27th. Xylem's dividend payout ratio is presently 40.95%.

Hedge Funds Weigh In On Xylem

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC grew its position in shares of Xylem by 14.4% in the 1st 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 period. NewEdge Advisors LLC lifted its stake in Xylem by 3.3% in 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 in the last quarter. Empowered Funds LLC lifted its stake in Xylem by 56.1% in the first 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 second 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 during the period. Finally, EverSource Wealth Advisors LLC increased its position in shares of Xylem by 114.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,192 shares of the industrial products company's stock worth $154,000 after acquiring an additional 635 shares in the last quarter. 87.96% of the stock is owned by institutional investors.

About Xylem

Xylem Inc NYSE: XYL is a global water technology company that develops products, services and solutions for the transportation, treatment, testing and efficient use of water and wastewater. Its customers include municipalities, utilities, industrial businesses, commercial facilities and residential users.

The company's offerings include water and wastewater pumps, controls, treatment systems, filtration and disinfection equipment, smart metering and network technologies, monitoring tools, data analytics and related maintenance services.

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