Xylem Inc. (NYSE:XYL) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Xylem has an average analyst rating of “Moderate Buy” from 14 brokerages, with eight Buy ratings and six Hold ratings. The average 1-year price target is about $153.31.
• The company recently reported better-than-expected quarterly results, earning $1.12 per share versus the $1.09 estimate and bringing in $2.12 billion in revenue, slightly ahead of forecasts. Xylem also raised FY 2026 guidance to 5.35–5.60 EPS.
• Xylem paid a quarterly dividend of $0.43 per share, equal to an annualized yield of about 1.4%. The company also saw mixed insider activity, including a director purchase and a chief accounting officer sale.

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) have been assigned an average rating of "Moderate Buy" from the fourteen brokerages that are presently covering the firm, Marketbeat.com reports. Six analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $153.3077.

XYL has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Barclays reduced their price target on Xylem from $156.00 to $154.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Oppenheimer decreased their price target on Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. Finally, CLSA raised Xylem to a "hold" rating in a research note on Thursday, June 25th.

Xylem Price Performance

NYSE XYL opened at $122.96 on Friday. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $29.23 billion, a PE ratio of 30.59, a price-to-earnings-growth ratio of 1.78 and a beta of 1.03. Xylem has a 12-month low of $105.29 and a 12-month high of $154.27. The company has a 50 day moving average price of $113.23 and a two-hundred day moving average price of $123.48.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.09 by $0.03. The company had revenue of $2.12 billion for the quarter, compared to analyst estimates of $2.11 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. Xylem's quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, equities analysts predict that Xylem will post 5.51 earnings per share for the current fiscal year.

Xylem Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th were issued a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a yield of 1.4%. The ex-dividend date was Thursday, May 28th. Xylem's dividend payout ratio (DPR) is 42.79%.

Insider Buying and Selling

In other news, Director Jerome A. Peribere bought 1,210 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the purchase, the director owned 27,209 shares of the company's stock, valued at $3,172,841.49. This represents a 4.65% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of Xylem stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the completion of the transaction, the chief accounting officer owned 3,605 shares in the company, valued at $423,443.30. This trade represents a 54.22% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On Xylem

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Tema ETFs LLC increased its stake in shares of Xylem by 8.6% in the second quarter. Tema ETFs LLC now owns 3,663 shares of the industrial products company's stock worth $433,000 after purchasing an additional 290 shares during the period. Dudley & Shanley Inc. boosted its stake in Xylem by 124.0% during the 2nd quarter. Dudley & Shanley Inc. now owns 181,050 shares of the industrial products company's stock valued at $21,402,000 after purchasing an additional 100,220 shares during the period. Norman Fields Gottscho Capital Management LLC boosted its stake in Xylem by 87.6% during the 2nd quarter. Norman Fields Gottscho Capital Management LLC now owns 4,370 shares of the industrial products company's stock valued at $517,000 after purchasing an additional 2,040 shares during the period. Thurston Springer Miller Herd & Titak Inc. grew its holdings in Xylem by 6.0% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 4,202 shares of the industrial products company's stock valued at $497,000 after buying an additional 239 shares during the last quarter. Finally, Czech National Bank grew its holdings in Xylem by 2.0% in the 2nd quarter. Czech National Bank now owns 67,657 shares of the industrial products company's stock valued at $7,998,000 after buying an additional 1,314 shares during the last quarter. 87.96% of the stock is owned by institutional investors and hedge funds.

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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