Xylem Inc. (NYSE:XYL) Sees Large Increase in Short Interest

Key Points

• Short interest surged 21% in March to 4,886,905 shares as of March 31 (about 2.0% of the stock), with a days-to-cover of roughly 2.4 based on average daily volume.
• The Board approved a $1.5 billion share repurchase program, authorizing buybacks of up to about 4.8% of outstanding shares.
• Xylem raised its quarterly dividend to $0.43 (annualized $1.72, ~1.4% yield) and reported quarterly EPS of $1.42, while issuing FY2026 guidance of $5.350–$5.560 per share.

Xylem Inc. (NYSE:XYL - Get Free Report) was the target of a large increase in short interest in March. As of March 31st, there was short interest totaling 4,886,905 shares, an increase of 21.0% from the March 15th total of 4,037,620 shares. Currently, 2.0% of the company's stock are short sold. Based on an average daily trading volume, of 2,045,752 shares, the days-to-cover ratio is presently 2.4 days.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. SJS Investment Consulting Inc. increased its position in shares of Xylem by 1,844.4% during the third quarter. SJS Investment Consulting Inc. now owns 175 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 166 shares during the period. Knuff & Co LLC bought a new stake in shares of Xylem during the third quarter valued at approximately $27,000. Wexford Capital LP bought a new stake in shares of Xylem during the third quarter valued at approximately $27,000. Commonwealth Retirement Investments LLC bought a new stake in shares of Xylem during the fourth quarter valued at approximately $27,000. Finally, First Horizon Corp bought a new stake in shares of Xylem during the third quarter valued at approximately $30,000. 87.96% of the stock is currently owned by institutional investors and hedge funds.

Xylem Stock Up 0.0%

Shares of XYL stock opened at $125.20 on Friday. Xylem has a 12 month low of $107.04 and a 12 month high of $154.27. The firm has a market cap of $30.44 billion, a PE ratio of 31.94, a price-to-earnings-growth ratio of 1.80 and a beta of 1.18. The stock has a 50 day moving average of $125.42 and a 200-day moving average of $136.77. 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 (NYSE:XYL - Get Free Report) last issued its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 EPS for the quarter, hitting analysts' consensus estimates of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.During the same quarter last year, the firm earned $1.18 earnings per share. The company'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. On average, equities analysts predict that Xylem will post 4.65 EPS for the current year.

Xylem declared that its Board of Directors has approved a share repurchase program on Wednesday, February 25th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows 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 shares are undervalued.

Xylem Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.4%. This is a boost from Xylem's previous quarterly dividend of $0.40. The ex-dividend date was Tuesday, February 24th. Xylem's dividend payout ratio is presently 43.88%.

Analysts Set New Price Targets

Several equities research analysts recently commented on XYL shares. Weiss Ratings cut Xylem from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Monday, April 6th. Citigroup reduced their target price on Xylem from $182.00 to $174.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. Wall Street Zen lowered Xylem from a "buy" rating to a "hold" rating in a report on Saturday, December 27th. TD Cowen restated a "hold" rating on shares of Xylem in a report on Monday, February 23rd. Finally, UBS Group reduced their target price on Xylem from $155.00 to $152.00 and set a "buy" rating for the company in a report on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, Xylem currently has a consensus rating of "Moderate Buy" and an average price target of $155.31.

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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