Barclays Begins Coverage on Xylem (NYSE:XYL)

Key Points

• Barclays has initiated coverage on Xylem (NYSE:XYL), assigning an "overweight" rating and setting a target price of $165.00, indicating a potential upside of 15.90% from the current stock price.
• Several analysts, including UBS and Citigroup, have also recently increased their price targets for Xylem, with a consensus target price of $152.33 reflecting a "Moderate Buy" rating across the board.
• Xylem reported a Q2 EPS of $1.26, beating estimates, and its revenue increased by 6.1% year-over-year, with FY 2025 guidance set at 4.700-4.850 EPS.

Barclays assumed coverage on shares of Xylem (NYSE:XYL - Free Report) in a research note released on Friday, MarketBeat reports. The firm issued an overweight rating and a $165.00 price objective on the industrial products company's stock.

Several other research analysts have also recently weighed in on XYL. Citigroup reiterated a "buy" rating and set a $152.00 price objective (up previously from $137.00) on shares of Xylem in a research report on Monday, July 14th. Mizuho increased their price objective on Xylem from $125.00 to $140.00 and gave the stock a "neutral" rating in a research report on Friday, September 12th. UBS Group increased their price objective on Xylem from $164.00 to $168.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. TD Cowen increased their price objective on Xylem from $125.00 to $130.00 and gave the stock a "hold" rating in a research report on Tuesday, August 26th. Finally, Stifel Nicolaus increased their price objective on Xylem from $162.00 to $175.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Seven research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $152.33.

Xylem Stock Performance

XYL traded up $0.65 during trading hours on Friday, reaching $142.83. The company's stock had a trading volume of 2,435,675 shares, compared to its average volume of 1,133,769. Xylem has a 52 week low of $100.47 and a 52 week high of $145.33. The company's 50-day moving average is $139.24 and its 200-day moving average is $128.04. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.43 and a current ratio of 1.90. The firm has a market cap of $34.77 billion, a PE ratio of 37.10, a price-to-earnings-growth ratio of 2.47 and a beta of 1.09.

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

Xylem Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Investors of record on Thursday, August 28th will be given a $0.40 dividend. The ex-dividend date is Thursday, August 28th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.1%. Xylem's dividend payout ratio (DPR) is presently 41.56%.

Insider Activity at Xylem

In related news, CAO Geri-Michelle Mcshane sold 1,000 shares of the firm's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $139.96, for a total value of $139,960.00. Following the transaction, the chief accounting officer owned 2,957 shares in the company, valued at approximately $413,861.72. This trade represents a 25.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Valley National Advisers Inc. boosted its stake in Xylem by 84.9% in the first quarter. Valley National Advisers Inc. now owns 220 shares of the industrial products company's stock valued at $26,000 after buying an additional 101 shares in the last quarter. Perkins Coie Trust Co acquired a new stake in Xylem in the first quarter valued at about $27,000. Maseco LLP acquired a new stake in Xylem in the second quarter valued at about $31,000. ST Germain D J Co. Inc. boosted its stake in Xylem by 950.0% in the second quarter. ST Germain D J Co. Inc. now owns 252 shares of the industrial products company's stock valued at $33,000 after buying an additional 228 shares in the last quarter. Finally, Center for Financial Planning Inc. boosted its stake in Xylem by 52.0% in the first quarter. Center for Financial Planning Inc. now owns 266 shares of the industrial products company's stock valued at $32,000 after buying an additional 91 shares in the last quarter. Institutional investors own 87.96% of the company's stock.

Xylem Company Profile

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.