Xylem Inc. (NYSE:XYL) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Moderate Buy consensus from 14 analysts (seven buy, seven hold) with an average 1‑year price target of $152.77.
• Xylem beat Q1 estimates with EPS of $1.12 (vs. $1.09) and revenue of $2.13B (vs. $2.11B) and set FY2026 guidance of 5.35–5.60 EPS (street expectation ~5.51).
• The board authorized a $1.50 billion share repurchase (up to 4.8% of shares) and raised the quarterly dividend to $0.43 (annualized $1.72, ~1.5% yield).

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the fourteen research firms that are presently covering the company, Marketbeat reports. Seven analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $152.7692.

Several equities research analysts have recently issued reports on the stock. Stifel Nicolaus decreased their price objective on shares of Xylem from $163.00 to $159.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. TD Cowen reaffirmed a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Barclays decreased their price objective on shares of Xylem from $156.00 to $154.00 and set an "overweight" rating for the company in a research report on Wednesday. William Blair began coverage on shares of Xylem in a research report on Monday, January 26th. They issued an "outperform" rating for the company. Finally, JPMorgan Chase & Co. reduced their price target on shares of Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th.

Institutional Investors Weigh In On Xylem

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. J. Stern & Co. LLP lifted its position in Xylem by 12,326.6% in the fourth quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company's stock valued at $6,189,132,000 after acquiring an additional 45,082,435 shares during the last quarter. Vanguard Group Inc. lifted its position 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 acquiring an additional 152,507 shares during the last quarter. State Street Corp lifted its position in Xylem by 2.6% in the fourth quarter. State Street Corp now owns 11,233,427 shares of the industrial products company's stock valued at $1,529,768,000 after acquiring an additional 280,221 shares during the last quarter. Geode Capital Management LLC lifted its position in Xylem by 2.4% in the fourth quarter. Geode Capital Management LLC now owns 6,357,278 shares of the industrial products company's stock valued at $862,364,000 after acquiring an additional 151,754 shares during the last quarter. Finally, Swedbank AB raised its holdings in shares of Xylem by 0.3% in the first quarter. Swedbank AB now owns 5,526,725 shares of the industrial products company's stock valued at $660,444,000 after buying an additional 18,759 shares during the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

Xylem Price Performance

Xylem stock opened at $115.32 on Monday. The stock has a market cap of $27.41 billion, a P/E ratio of 28.69, a price-to-earnings-growth ratio of 1.64 and a beta of 1.08. The company has a fifty day simple moving average of $123.29 and a 200-day simple moving average of $134.70. Xylem has a 12-month low of $114.15 and a 12-month high of $154.27. The company has a current ratio of 1.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.03. The business had revenue of $2.13 billion during 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%. The company's revenue for the quarter was up 2.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities analysts expect that Xylem will post 5.51 EPS for the current fiscal year.

Xylem announced that its Board of Directors has authorized a share repurchase plan on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the industrial products company to purchase up to 4.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board of directors believes its shares are undervalued.

Xylem Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were given a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a yield of 1.5%. This is a boost from Xylem's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, February 24th. Xylem's dividend payout ratio is presently 42.79%.

Xylem Company 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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