Xylem (NYSE:XYL) Hits New 1-Year High - Should You Buy?

Key Points

• Xylem Inc.'s stock has reached a new 52-week high of $151.00 during trading, with the last transaction at $149.53 and a volume of over 41,000 shares.
• Various analysts have upgraded their ratings on Xylem, with Wall Street Zen moving from "hold" to "buy," while Citigroup increased its price target to $152.00.
• The company has announced a quarterly dividend of $0.40 per share, yielding 1.1%, and its current dividend payout ratio stands at 41.56%.

Xylem Inc. (NYSE:XYL - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $151.00 and last traded at $149.53, with a volume of 41065 shares changing hands. The stock had previously closed at $149.85.

Analyst Ratings Changes

A number of research firms have commented on XYL. TD Cowen upped their price target on Xylem from $125.00 to $130.00 and gave the company a "hold" rating in a research report on Tuesday, August 26th. Wall Street Zen upgraded Xylem from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Weiss Ratings reiterated a "buy (b)" rating on shares of Xylem in a report on Saturday, September 27th. Citigroup restated a "buy" rating and issued a $152.00 price objective (up from $137.00) on shares of Xylem in a report on Monday, July 14th. Finally, Zacks Research raised shares of Xylem from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Xylem has an average rating of "Moderate Buy" and an average price target of $152.33.

Xylem Trading Down 0.2%

The stock has a fifty day simple moving average of $141.96 and a 200 day simple moving average of $129.55. The firm has a market capitalization of $36.39 billion, a P/E ratio of 38.86, a PEG ratio of 2.59 and a beta of 1.13. The company has a quick ratio of 1.43, a current ratio of 1.90 and a debt-to-equity ratio of 0.17.

Xylem (NYSE:XYL - Get Free Report) last issued its earnings results on Thursday, July 31st. The industrial products company reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.11. Xylem had a return on equity of 10.33% and a net margin of 10.74%.The company had revenue of $2.30 billion for the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter last year, the company earned $1.09 EPS. The firm's quarterly revenue was up 6.1% on a year-over-year basis. Xylem has set its FY 2025 guidance at 4.700-4.850 EPS. As a group, research analysts forecast that Xylem Inc. will post 4.65 EPS for the current year.

Xylem Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 25th. Investors of record on Thursday, August 28th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Thursday, August 28th. Xylem's dividend payout ratio (DPR) is presently 41.56%.

Insider Buying and Selling

In other Xylem news, CAO Geri-Michelle Mcshane sold 1,000 shares of the stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $139.96, for a total transaction of $139,960.00. Following the completion of the transaction, the chief accounting officer owned 2,957 shares of the company's stock, valued at $413,861.72. This represents a 25.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Xylem

Hedge funds have recently bought and sold shares of the business. NBC Securities Inc. bought a new position in shares of Xylem during the 1st quarter valued at approximately $72,000. Merit Financial Group LLC grew its stake in Xylem by 13.0% in the 1st quarter. Merit Financial Group LLC now owns 2,707 shares of the industrial products company's stock worth $323,000 after acquiring an additional 312 shares in the last quarter. Procyon Advisors LLC raised its position in Xylem by 13.1% during the 1st quarter. Procyon Advisors LLC now owns 3,601 shares of the industrial products company's stock valued at $430,000 after purchasing an additional 416 shares in the last quarter. Perennial Advisors LLC increased its stake in shares of Xylem by 2.2% during the first quarter. Perennial Advisors LLC now owns 49,127 shares of the industrial products company's stock valued at $5,869,000 after buying an additional 1,036 shares during the period. Finally, Wedmont Private Capital increased its position in Xylem by 6.1% during the 1st quarter. Wedmont Private Capital now owns 2,348 shares of the industrial products company's stock valued at $256,000 after purchasing an additional 136 shares during the period. Hedge funds and other institutional investors own 87.96% of the company's stock.

About Xylem

Xylem Inc, together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands.

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