Xylem (NYSE:XYL) Stock Gets Downgrade from Zacks Research

Xylem (NYSE:XYL) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other analysts have also issued reports on XYL. Stifel Nicolaus lowered their target price on Xylem from $141.00 to $114.00 and set a “buy” rating on the stock in a report on Wednesday. Oppenheimer cut their price target on Xylem from $150.00 to $135.00 and set an “outperform” rating for the company in a report on Wednesday. Mizuho set a $99.00 price objective on Xylem in a research report on Wednesday. UBS Group lowered their price objective on shares of Xylem from $112.00 to $99.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, BNP Paribas Exane dropped their target price on shares of Xylem from $145.00 to $135.00 and set an “outperform” rating on the stock in a research report on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $121.31.

Xylem Stock Up 1.8%

Shares of Xylem stock opened at $92.41 on Thursday. Xylem has a 12-month low of $87.40 and a 12-month high of $152.43. The company has a quick ratio of 1.24, a current ratio of 1.39 and a debt-to-equity ratio of 0.23. The stock has a 50 day moving average price of $105.05 and a two-hundred day moving average price of $117.57. The stock has a market capitalization of $21.19 billion, a P/E ratio of 20.44, a PEG ratio of 1.51 and a beta of 1.00.

Xylem (NYSE:XYL) last posted its quarterly earnings data on Tuesday, October 27th. The industrial products company reported $1.44 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.01). Xylem had a return on equity of 12.06% and a net margin of 11.94%. The business had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.28 billion. During the same quarter in the previous year, the firm posted $1.37 earnings per share. The company’s revenue for the quarter was down 3.0% on a year-over-year basis. Equities analysts expect that Xylem will post 5.45 earnings per share for the current year.

Insider Transactions at Xylem

In other news, Director D Koch purchased 11,000 shares of the stock in a transaction that occurred on Thursday, October 29th. The shares were purchased at an average cost of $89.60 per share, for a total transaction of $985,600.00. Following the completion of the purchase, the director directly owned 12,247 shares of the company’s stock, valued at approximately $1,097,331.20. The trade was a 882.12% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.32% of the stock is owned by corporate insiders.

Institutional Trading of Xylem

Several institutional investors have recently modified their holdings of XYL. William Mack & Associates Inc. acquired a new position in shares of Xylem in the third quarter valued at $25,000. Dunhill Financial LLC acquired a new stake in Xylem during the second quarter worth $30,000. Avalon Trust Co acquired a new stake in Xylem during the second quarter worth $35,000. Orion Capital Management LLC bought a new stake in Xylem in the 2nd quarter valued at $35,000. Finally, Aventus Investment Advisors Inc. increased its holdings in Xylem by 66.7% in the 2nd quarter. Aventus Investment Advisors Inc. now owns 300 shares of the industrial products company’s stock valued at $35,000 after buying an additional 120 shares during the period. Institutional investors and hedge funds own 87.96% of the company’s stock.

Key Stories Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Director D. Christian Koch purchased 11,000 Xylem shares for approximately $985,600 at an average price of $89.60. The transaction increased his direct holdings more than eightfold and may signal confidence that the recent selloff has created an attractive entry point. Insider purchase report
• Positive Sentiment: Some analysts continue to see longer-term value. RBC Capital reaffirmed its buy rating, while RBC’s new coverage assigned a moderate-buy rating and a $125 price target, implying substantial upside from recent levels. RBC rating report
• Neutral Sentiment: Xylem announced divestitures and a new three-segment operating structure. The changes could sharpen strategic focus and improve portfolio efficiency, but execution and transition risks remain. Xylem restructuring report
• Negative Sentiment: Xylem’s latest quarter missed expectations: EPS was $1.44 versus $1.45 expected, revenue was $2.20 billion versus $2.28 billion expected, and sales declined 3% year over year. Management’s new 2026 adjusted-EPS ceiling of $5.45 is below the prior $5.55 floor, reinforcing concerns about weaker growth.
• Negative Sentiment: Barclays downgraded Xylem to equal weight from overweight, JPMorgan lowered its rating to underweight, and UBS, Stifel, BNP Paribas Exane, Citigroup and Oppenheimer reduced price targets. The revisions reflect diminished near-term earnings and valuation expectations. Barclays downgrade report
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential securities-law violations related to investor losses, adding legal uncertainty and another possible overhang for XYL shareholders. Investigation announcement

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that develops products and services for the transportation, treatment, testing and efficient use of water and wastewater. Its offerings support municipal water and wastewater utilities, industrial customers, commercial facilities and residential applications.

The company’s products and solutions include water and wastewater pumps, treatment systems, dewatering equipment, smart meters, monitoring and control technologies, leak detection tools, and data-driven analytics.