Sycomore Asset Management Makes New Investment in Xylem Inc. $XYL

Sycomore Asset Management acquired a new position in shares of Xylem Inc. (NYSE:XYL) in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 25,939 shares of the industrial products company’s stock, valued at approximately $3,479,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Norges Bank bought a new stake in Xylem during the 2nd quarter worth approximately $338,232,000. ABN AMRO Bank N.V. bought a new position in Xylem in the 2nd quarter valued at $208,226,000. Schroder Investment Management Group boosted its stake in Xylem by 2,055.2% in the third quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company’s stock worth $171,687,000 after purchasing an additional 1,137,342 shares in the last quarter. Swedbank AB boosted its stake in Xylem by 19.0% in the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company’s stock worth $766,669,000 after purchasing an additional 830,821 shares in the last quarter. Finally, Amundi grew its holdings in shares of Xylem by 17.0% during the second quarter. Amundi now owns 5,714,576 shares of the industrial products company’s stock worth $730,717,000 after purchasing an additional 830,337 shares during the last quarter. 87.96% of the stock is owned by institutional investors and hedge funds.

Xylem Trading Up 0.6%

XYL opened at $121.74 on Wednesday. The firm has a 50 day simple moving average of $133.22 and a 200 day simple moving average of $139.54. Xylem Inc. has a fifty-two week low of $100.47 and a fifty-two week high of $154.27. The company has a market cap of $29.60 billion, a price-to-earnings ratio of 31.06, a price-to-earnings-growth ratio of 1.73 and a beta of 1.17. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28.

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

Xylem declared that its board has authorized a stock repurchase plan on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the industrial products company to buy up to 4.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Xylem Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, February 24th will be given a $0.43 dividend. The ex-dividend date is 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 is 43.88%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on XYL. Stifel Nicolaus cut their price target on Xylem from $178.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, February 11th. William Blair began coverage on shares of Xylem in a report on Monday, January 26th. They set an “outperform” rating on the stock. Wall Street Zen cut shares of Xylem from a “buy” rating to a “hold” rating in a research report on Saturday, December 27th. Robert W. Baird set a $161.00 target price on shares of Xylem in a research note on Wednesday, February 11th. Finally, UBS Group reiterated a “buy” rating and set a $155.00 target price on shares of Xylem in a research report on Friday, February 13th. Nine research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Xylem has an average rating of “Moderate Buy” and an average price target of $158.08.

Xylem 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.