Xylem (NYSE:XYL) Sets New 12-Month Low - Here's Why

Key Points

• Xylem shares hit a new 52-week low on Thursday, trading as low as $105.29 amid heavy volume, even as the stock had previously closed at $106.34.
• Analysts remain mixed on the name: several firms trimmed price targets or ratings, but the consensus is still Moderate Buy with an average target price of $152.77.
• The company reported better-than-expected Q1 results, with EPS of $1.12 and revenue of $2.13 billion, and it also announced a $0.43 quarterly dividend plus a $1.5 billion share buyback program.

Shares of Xylem Inc. (NYSE:XYL - Get Free Report) reached a new 52-week low during trading on Thursday . The company traded as low as $105.29 and last traded at $108.0750, with a volume of 1737875 shares trading hands. The stock had previously closed at $106.34.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Weiss Ratings lowered shares of Xylem from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, May 8th. UBS Group raised their price objective on shares of Xylem from $132.00 to $133.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. William Blair started coverage on shares of Xylem in a research report on Monday, January 26th. They issued an "outperform" rating for the company. JPMorgan Chase & Co. lowered their target price on shares of Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Finally, Citigroup lowered their target price on shares of Xylem from $174.00 to $168.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $152.77.

Xylem Stock Performance

The stock has a fifty day simple moving average of $119.40 and a 200-day simple moving average of $131.61. The stock has a market cap of $25.69 billion, a P/E ratio of 26.88, a PEG ratio of 1.51 and a beta of 1.08. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.03. The company had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.Xylem's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, equities analysts expect that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th will be given a dividend of $0.43 per share. The ex-dividend date is Thursday, May 28th. This represents a $1.72 annualized dividend and a yield of 1.6%. Xylem's dividend payout ratio (DPR) is 42.79%.

Xylem announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the industrial products company to repurchase up to 4.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other Xylem news, Director Jerome A. Peribere purchased 1,210 shares of the company's stock in a transaction dated Monday, May 4th. The stock was bought 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 owned 27,209 shares in the company, valued at approximately $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of Xylem stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the completion of the sale, the chief accounting officer owned 3,605 shares of the company's stock, valued at approximately $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.32% of the stock is currently owned by insiders.

Institutional Trading of Xylem

Several institutional investors have recently modified their holdings of the business. State of Wyoming grew its stake in shares of Xylem by 10.4% in the third quarter. State of Wyoming now owns 756 shares of the industrial products company's stock worth $112,000 after purchasing an additional 71 shares during the last quarter. Orion Porfolio Solutions LLC boosted its position in Xylem by 1.0% during the third quarter. Orion Porfolio Solutions LLC now owns 7,802 shares of the industrial products company's stock valued at $1,151,000 after acquiring an additional 74 shares during the last quarter. Journey Strategic Wealth LLC boosted its position in Xylem by 1.5% during the third quarter. Journey Strategic Wealth LLC now owns 5,107 shares of the industrial products company's stock valued at $753,000 after acquiring an additional 77 shares during the last quarter. Quest Investment Management LLC boosted its position in Xylem by 1.0% during the third quarter. Quest Investment Management LLC now owns 7,588 shares of the industrial products company's stock valued at $1,119,000 after acquiring an additional 77 shares during the last quarter. Finally, Keel Point LLC boosted its position in Xylem by 4.6% during the third quarter. Keel Point LLC now owns 1,784 shares of the industrial products company's stock valued at $263,000 after acquiring an additional 79 shares during the last quarter. Institutional investors 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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