Xylem (NYSE:XYL) to Repurchase $1.50 billion in Outstanding Stock

Xylem (NYSE:XYL) declared that its board has approved a stock buyback plan on Wednesday, February 25th, RTT News reports. The company plans to buyback $1.50 billion in shares. This buyback authorization allows the industrial products company to repurchase up to 4.8% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

XYL has been the subject of a number of research analyst reports. TD Cowen restated a “hold” rating on shares of Xylem in a research note on Monday. Wall Street Zen lowered shares of Xylem from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. Citigroup reduced their price target on shares of Xylem from $182.00 to $174.00 and set a “buy” rating on the stock in a research report on Wednesday, February 11th. Oppenheimer set a $165.00 price target on Xylem in a research note on Thursday, February 12th. Finally, Barclays cut their price objective on Xylem from $166.00 to $156.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 11th. Nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $158.08.

Xylem Stock Performance

Shares of XYL opened at $129.46 on Friday. The firm has a fifty day moving average of $136.69 and a 200-day moving average of $141.14. The company has a market cap of $31.48 billion, a price-to-earnings ratio of 33.02, a price-to-earnings-growth ratio of 1.89 and a beta of 1.17. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62. Xylem has a 1 year low of $100.47 and a 1 year high of $154.27.

Xylem (NYSE:XYL) last released its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. The business’s quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.18 EPS. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, equities analysts anticipate that Xylem will post 4.65 earnings per share for the current year.

Xylem Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th will be issued a $0.43 dividend. This is a positive change from Xylem’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Tuesday, February 24th. This represents a $1.72 dividend on an annualized basis and a yield of 1.3%. Xylem’s dividend payout ratio is currently 43.88%.

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.