Xylem Inc. (NYSE:XYL) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Xylem has a consensus analyst rating of “Moderate Buy” from 13 brokerages, with 7 buy ratings and 6 hold ratings. The average 12-month price target is about $152.77.
• The company reported better-than-expected Q1 results, posting EPS of $1.12 versus estimates of $1.09 and revenue of $2.13 billion versus $2.11 billion expected. Xylem also raised its full-year outlook, guiding FY 2026 EPS to 5.35–5.60.
• Xylem recently announced a quarterly dividend of $0.43 per share and a $1.5 billion share repurchase program. Insider activity was mixed, with one director buying shares while the CAO sold shares.

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) have earned an average recommendation of "Moderate Buy" from the thirteen research firms that are presently covering the stock, MarketBeat reports. Six investment analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $152.7692.

A number of brokerages have weighed in on XYL. JPMorgan Chase & Co. lowered their price target on Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. Robert W. Baird set a $161.00 price objective on Xylem in a research report on Wednesday, February 11th. TD Cowen reiterated a "hold" rating on shares of Xylem in a research note on Monday, February 23rd. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. Finally, Jefferies Financial Group restated a "hold" rating and issued a $130.00 price target (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st.

Insider Transactions at Xylem

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

Hedge Funds Weigh In On Xylem

Several institutional investors and hedge funds have recently made changes to their positions in the company. Knuff & Co LLC bought a new stake in Xylem in the 3rd quarter valued at $27,000. Board of the Pension Protection Fund acquired a new stake in shares of Xylem during the fourth quarter worth $27,000. Commonwealth Retirement Investments LLC acquired a new stake in shares of Xylem during the fourth quarter worth $27,000. Wexford Capital LP bought a new stake in shares of Xylem in the third quarter valued at about $27,000. Finally, Ramirez Asset Management Inc. boosted its position in shares of Xylem by 100.0% in the third quarter. Ramirez Asset Management Inc. now owns 200 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 100 shares during the period. Institutional investors and hedge funds own 87.96% of the company's stock.

Xylem Stock Performance

NYSE XYL opened at $109.00 on Friday. The firm has a market capitalization of $25.91 billion, a P/E ratio of 27.11, a price-to-earnings-growth ratio of 1.57 and a beta of 1.08. The company has a current ratio of 1.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13. The firm's fifty day moving average price is $118.04 and its two-hundred day moving average price is $129.90. Xylem has a 1 year low of $105.29 and a 1 year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.03. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The company had revenue of $2.13 billion during the quarter, compared to the consensus estimate of $2.11 billion. During the same quarter last year, the firm posted $1.03 EPS. The company's quarterly 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, research analysts anticipate that Xylem will post 5.51 EPS for the current year.

Xylem Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th will be issued a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Thursday, May 28th. Xylem's payout ratio is currently 42.79%.

Xylem declared that its Board of Directors has authorized a stock buyback plan on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in outstanding 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 usually a sign that the company's board of directors believes its shares are 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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