Xylem Inc. (NYSE:XYL) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Xylem has a consensus analyst rating of “Moderate Buy” from 13 brokerages, with seven buy ratings and six hold ratings. The average 12-month price target is about $152.77.
• The company recently beat quarterly expectations, reporting EPS of $1.12 versus the $1.09 estimate and revenue of $2.13 billion, up 2.7% year over year. Xylem also reaffirmed strong forward expectations, with FY 2026 guidance of 5.35-5.60 EPS.
• Xylem announced a $1.5 billion stock buyback program and a quarterly dividend of $0.43 per share, payable June 25, for an annualized yield of about 1.5%. Insider activity was mixed, with one executive selling shares and a director buying shares.

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) have received an average recommendation of "Moderate Buy" from the thirteen brokerages that are currently covering the firm, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $152.7692.

Several equities research analysts have recently weighed in on XYL shares. Oppenheimer decreased their price objective on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a research report on Wednesday, April 29th. Citigroup decreased their price objective on shares of Xylem from $174.00 to $168.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. 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 reiterated a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Finally, UBS Group increased 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.

Xylem Trading Up 0.3%

Shares of NYSE XYL opened at $111.77 on Tuesday. 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 has a 52-week low of $105.29 and a 52-week high of $154.27. The firm has a 50 day moving average price of $114.17 and a two-hundred day moving average price of $126.01. The stock has a market cap of $26.57 billion, a P/E ratio of 27.80, a price-to-earnings-growth ratio of 1.59 and a beta of 1.05.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings results 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. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The firm had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.11 billion. During the same period in the prior year, the company posted $1.03 EPS. The company's revenue was up 2.7% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, equities analysts forecast that Xylem will post 5.51 EPS for the current year.

Xylem announced that its board has authorized a stock buyback program on Wednesday, February 25th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the industrial products company to repurchase up to 4.8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Xylem Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, May 28th will be given a dividend of $0.43 per share. The ex-dividend date is Thursday, May 28th. This represents a $1.72 annualized dividend and a dividend yield of 1.5%. Xylem's dividend payout ratio is 42.79%.

Insider Buying and Selling at Xylem

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 transaction of $501,436.74. Following the completion of the sale, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. This represents a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jerome A. Peribere acquired 1,210 shares of the firm's stock in a transaction dated Monday, May 4th. The shares were purchased at an average price of $116.61 per share, with a total value of $141,098.10. Following the completion of the transaction, the director owned 27,209 shares of the company's stock, valued at $3,172,841.49. This trade represents a 4.65% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of XYL. Knuff & Co LLC bought a new position in Xylem during the third quarter worth $27,000. Board of the Pension Protection Fund bought a new position in Xylem during the fourth quarter worth $27,000. Commonwealth Retirement Investments LLC bought a new position in Xylem during the fourth quarter worth $27,000. Wexford Capital LP bought a new position in Xylem during the third quarter worth $27,000. Finally, Ramirez Asset Management Inc. boosted its stake in Xylem by 100.0% during the third quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock worth $30,000 after acquiring an additional 100 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 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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