Xylem (NYSE:XYL) Sets New 12-Month High - Should You Buy?

Key Points

• Xylem Inc. (NYSE:XYL) reached a new 52-week high of $145.70 and has a current price consensus target of $152.33.
• Wall Street analysts have shown increased confidence in Xylem, with ratings upgraded to "strong-buy" and "overweight," accompanied by increasing price targets from various firms.
• The company reported $1.26 EPS, exceeding expectations, and announced a quarterly dividend of $0.40, resulting in an annualized yield of 1.1%.

Xylem Inc. (NYSE:XYL - Get Free Report) hit a new 52-week high on Tuesday . The stock traded as high as $145.70 and last traded at $145.22, with a volume of 109262 shares traded. The stock had previously closed at $143.95.

Wall Street Analysts Forecast Growth

XYL has been the subject of a number of research analyst reports. Mizuho upped their price target on Xylem from $125.00 to $140.00 and gave the company a "neutral" rating in a report on Friday, September 12th. Wall Street Zen raised shares of Xylem from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Zacks Research upgraded shares of Xylem from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 22nd. Barclays initiated coverage on shares of Xylem in a research note on Friday, September 19th. They issued an "overweight" rating and a $165.00 price objective for the company. Finally, TD Cowen raised their target price on shares of Xylem from $125.00 to $130.00 and gave the stock a "hold" rating in a research report on Tuesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $152.33.

Xylem Stock Performance

The company has a quick ratio of 1.43, a current ratio of 1.90 and a debt-to-equity ratio of 0.17. The stock has a fifty day moving average price of $140.60 and a 200-day moving average price of $128.78. The firm has a market cap of $35.67 billion, a price-to-earnings ratio of 38.06, a price-to-earnings-growth ratio of 2.47 and a beta of 1.09.

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

Xylem Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 25th. Investors of record on Thursday, August 28th were paid a $0.40 dividend. The ex-dividend date was Thursday, August 28th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.1%. Xylem's payout ratio is 41.56%.

Insiders Place Their Bets

In other Xylem news, CAO Geri-Michelle Mcshane sold 1,000 shares of the 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 completion of the transaction, the chief accounting officer owned 2,957 shares in the company, valued at approximately $413,861.72. This represents a 25.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Xylem

A number of large investors have recently made changes to their positions in XYL. AFG Fiduciary Services Limited Partnership acquired a new stake in shares of Xylem during the 2nd quarter valued at approximately $275,000. IFM Investors Pty Ltd raised its holdings in Xylem by 11.6% during the second quarter. IFM Investors Pty Ltd now owns 54,073 shares of the industrial products company's stock worth $6,995,000 after purchasing an additional 5,617 shares during the last quarter. Dynamic Advisor Solutions LLC purchased a new stake in Xylem during the first quarter worth $694,000. Farther Finance Advisors LLC grew its holdings in Xylem by 30.4% in the first quarter. Farther Finance Advisors LLC now owns 1,797 shares of the industrial products company's stock valued at $215,000 after purchasing an additional 419 shares during the last quarter. Finally, BROOKFIELD Corp ON increased its position in shares of Xylem by 26.5% in the first quarter. BROOKFIELD Corp ON now owns 16,375 shares of the industrial products company's stock valued at $1,956,000 after buying an additional 3,430 shares in the last quarter. 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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