Xylem (NYSE:XYL) Downgraded by UBS Group to Hold

UBS Group cut shares of Xylem (NYSE:XYL) from a buy rating to a hold rating in a report released on Tuesday morning, MarketBeat Ratings reports.

Several other equities analysts have also recently issued reports on XYL. Royal Bank Of Canada decreased their target price on shares of Xylem from $176.00 to $162.00 and set an “outperform” rating for the company in a research note on Wednesday, February 11th. JPMorgan Chase & Co. decreased their target price on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, April 16th. Citigroup decreased their target price on shares of Xylem from $182.00 to $174.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. Jefferies Financial Group reiterated a “hold” rating and issued a $130.00 target price (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. Finally, Oppenheimer reiterated an “outperform” rating and issued a $160.00 target price (down from $165.00) on shares of Xylem in a research note on Wednesday, April 1st. Eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $153.77.

Xylem Stock Performance

NYSE XYL traded up $0.47 on Tuesday, hitting $120.45. 281,857 shares of the company’s stock traded hands, compared to its average volume of 1,965,987. The company has a current ratio of 1.62, a quick ratio of 1.28 and a debt-to-equity ratio of 0.12. Xylem has a 1-year low of $112.98 and a 1-year high of $154.27. The firm’s 50-day moving average price is $124.42 and its two-hundred day moving average price is $136.04. The firm has a market capitalization of $29.29 billion, a PE ratio of 30.70, a P/E/G ratio of 1.73 and a beta of 1.18.

Xylem (NYSE:XYL) last announced its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 EPS for the quarter, meeting the consensus estimate of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. During the same quarter in the previous year, the business posted $1.18 earnings per share. The business’s revenue for the quarter was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, analysts expect that Xylem will post 5.47 EPS for the current year.

Xylem Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were paid a $0.43 dividend. The ex-dividend date was Tuesday, February 24th. This represents a $1.72 annualized dividend and a dividend yield of 1.4%. This is an increase from Xylem’s previous quarterly dividend of $0.40. Xylem’s dividend payout ratio (DPR) is presently 43.88%.

Xylem announced that its Board of Directors has approved a stock repurchase program on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the industrial products company to buy up to 4.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Xylem

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ferguson Wellman Capital Management Inc. purchased a new stake in Xylem in the 3rd quarter worth $1,148,000. Vanguard Personalized Indexing Management LLC increased its holdings in Xylem by 19.0% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 56,216 shares of the industrial products company’s stock worth $8,292,000 after acquiring an additional 8,960 shares in the last quarter. Fisher Asset Management LLC increased its holdings in Xylem by 6.4% in the 3rd quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company’s stock worth $59,681,000 after acquiring an additional 24,352 shares in the last quarter. Covea Finance grew its holdings in shares of Xylem by 25.5% during the third quarter. Covea Finance now owns 231,547 shares of the industrial products company’s stock worth $34,153,000 after buying an additional 47,000 shares in the last quarter. Finally, AEGON ASSET MANAGEMENT UK Plc grew its holdings in shares of Xylem by 9.8% during the third quarter. AEGON ASSET MANAGEMENT UK Plc now owns 417,651 shares of the industrial products company’s stock worth $61,629,000 after buying an additional 37,189 shares in the last quarter. Hedge funds and other institutional investors own 87.96% of the company’s stock.

About Xylem

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.