Xylem Inc. (NYSE:XYL) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts give Xylem a consensus rating of "Moderate Buy" from 15 firms (9 buy, 6 hold), with an average 12‑month target price of $155.54.
• Xylem raised its quarterly dividend to $0.43 and authorized a $1.50 billion buyback, representing up to 4.8% of outstanding shares.
• The company reported quarterly EPS of $1.42 (in line with estimates) with revenue up 6.3%, and set FY 2026 guidance of $5.35–$5.56 EPS.

Xylem Inc. (NYSE:XYL - Get Free Report) has received a consensus rating of "Moderate Buy" from the fifteen research firms that are currently covering the company, Marketbeat reports. Six analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $155.5385.

A number of brokerages recently issued reports on XYL. Robert W. Baird set a $161.00 target price on shares of Xylem in a research report on Wednesday, February 11th. Jefferies Financial Group reiterated a "hold" rating and issued a $130.00 target price (down from $140.00) on shares of Xylem in a research report on Tuesday, March 31st. Wall Street Zen lowered shares of Xylem from a "buy" rating to a "hold" rating in a research report on Saturday, December 27th. Weiss Ratings lowered shares of Xylem from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday. Finally, The Goldman Sachs Group set a $158.00 target price on shares of Xylem in a research report on Wednesday, February 11th.

Hedge Funds Weigh In On Xylem

A number of institutional investors and hedge funds have recently bought and sold shares of XYL. J. Stern & Co. LLP grew its position in Xylem by 12,326.6% in the 4th 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 buying an additional 45,082,435 shares in the last quarter. Norges Bank acquired a new position in shares of Xylem in the 4th quarter worth approximately $361,012,000. Schroder Investment Management Group raised its holdings in shares of Xylem by 2,055.2% in the 3rd quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company's stock worth $171,687,000 after purchasing an additional 1,137,342 shares in the last quarter. Swedbank AB lifted its stake in Xylem by 19.0% during the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company's stock valued at $766,669,000 after purchasing an additional 830,821 shares during the last quarter. Finally, Voya Investment Management LLC lifted its stake in Xylem by 544.0% during the third quarter. Voya Investment Management LLC now owns 868,755 shares of the industrial products company's stock valued at $128,141,000 after purchasing an additional 733,860 shares during the last quarter. Institutional investors own 87.96% of the company's stock.

Xylem Stock Up 3.1%

XYL stock opened at $128.08 on Thursday. The company has a quick ratio of 1.28, a current ratio of 1.62 and a debt-to-equity ratio of 0.12. Xylem has a fifty-two week low of $100.72 and a fifty-two week high of $154.27. The firm's 50-day simple moving average is $126.74 and its 200 day simple moving average is $137.35. The stock has a market cap of $31.14 billion, a PE ratio of 32.67, a price-to-earnings-growth ratio of 1.74 and a beta of 1.18.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, hitting analysts' consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same period in the previous year, the firm posted $1.18 EPS. The business's quarterly revenue was up 6.3% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, sell-side analysts predict that Xylem will post 4.65 EPS for the current year.

Xylem Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were given a $0.43 dividend. The ex-dividend date was Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a yield of 1.3%. This is a boost from Xylem's previous quarterly dividend of $0.40. Xylem's payout ratio is currently 43.88%.

Xylem declared that its Board of Directors has initiated a share buyback 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 reacquire up to 4.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

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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