Xylem (NYSE:XYL) Reaches New 1-Year Low - Here's What Happened

Key Points

• Xylem shares hit a new 52-week low, trading as low as $113.69 and ending the day down 1.6%, well below both its 50-day and 200-day moving averages.
• The company’s latest quarterly results were solid, with EPS of $1.12 topping estimates and revenue of $2.13 billion slightly ahead of expectations; Xylem also reaffirmed FY 2026 guidance of 5.35 to 5.60 EPS.
• Xylem boosted its quarterly dividend to $0.43 per share and authorized a $1.5 billion share repurchase plan, while an insider director also bought shares recently, signaling some confidence in the stock.

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) reached a new 52-week low during trading on Friday . The stock traded as low as $113.69 and last traded at $113.8150, with a volume of 1322741 shares changing hands. The stock had previously closed at $115.64.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on XYL shares. The Goldman Sachs Group set a $158.00 price objective on shares of Xylem in a research report on Wednesday, February 11th. William Blair initiated coverage on Xylem in a research note on Monday, January 26th. They issued an "outperform" rating for the company. Barclays reduced their price target on Xylem from $156.00 to $154.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. UBS Group increased their price target on Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Finally, Royal Bank Of Canada cut their price objective on Xylem from $176.00 to $162.00 and set an "outperform" rating for the company in a research report on Wednesday, February 11th. Seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $152.77.

Xylem Stock Down 1.6%

The firm has a market cap of $27.04 billion, a PE ratio of 28.30, a PEG ratio of 1.69 and a beta of 1.08. The business's 50 day moving average price is $122.63 and its 200 day moving average price is $134.10. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10.

Xylem (NYSE:XYL - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share 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 firm had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.11 billion. During the same period last year, the company posted $1.03 EPS. Xylem's quarterly revenue was up 2.7% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, equities research analysts expect that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th were paid a $0.43 dividend. This is a boost from Xylem's previous quarterly dividend of $0.40. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, February 24th. Xylem's dividend payout ratio is presently 42.79%.

Xylem declared that its Board of Directors has authorized a share repurchase plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the industrial products company to reacquire up to 4.8% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Activity

In other Xylem news, Director Jerome A. Peribere bought 1,210 shares of Xylem stock in a transaction dated Monday, May 4th. The stock was acquired at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the transaction, the director directly owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.32% of the stock is owned by insiders.

Institutional Trading of Xylem

A number of hedge funds have recently bought and sold shares of XYL. Knuff & Co LLC purchased a new stake in shares of Xylem in the third quarter valued at approximately $27,000. Board of the Pension Protection Fund acquired a new position in Xylem during the fourth quarter worth $27,000. Commonwealth Retirement Investments LLC acquired a new position in Xylem during the fourth quarter worth $27,000. Wexford Capital LP purchased a new stake in Xylem in the 3rd quarter valued at $27,000. Finally, First Horizon Corp acquired a new stake in shares of Xylem in the 3rd quarter worth $30,000. Institutional investors and hedge funds own 87.96% of the company's stock.

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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