Xylem (XYL) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Xylem (NYSE:XYL) from a hold rating to a buy rating in a report published on Tuesday morning. They currently have $88.00 target price on the industrial products company’s stock.
According to Zacks, “Xylem’s shares have outperformed the industry in three months’ time. The company reported robust fourth-quarter 2017 results. Xylem believes that improving wastewater transport, dewatering, gas, software & services and analytics business will bolster its revenues in the quarters ahead. Moreover, stronger residential, commercial and industrial applications businesses would likely strengthen revenues going forward. Moreover, Xylem noted that addition of Pure Technologies and EmNet will enhance its competency. Profitability in the upcoming quarters is anticipated to improve on the back of stronger top-line growth and ongoing productivity initiatives. Increased free cash flow generation will likely be spent over dividend payouts, new capital-expenditure programs and debt repayment. Over the last 60 days, Zacks Consensus Estimate for the stock has moved north for both 2018 and 2019.”
Several other research firms also recently commented on XYL. Oppenheimer boosted their target price on shares of Xylem to $82.00 and gave the stock an outperform rating in a research report on Friday, February 2nd. BMO Capital Markets reissued a buy rating and set a $86.00 target price on shares of Xylem in a research report on Friday, February 2nd. Seaport Global Securities reissued a buy rating and set a $83.00 target price on shares of Xylem in a research report on Friday, February 2nd. Cowen reissued a buy rating and set a $80.00 target price on shares of Xylem in a research report on Tuesday, March 6th. Finally, Canaccord Genuity reissued a hold rating and set a $75.00 target price on shares of Xylem in a research report on Sunday, January 28th. Five analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus price target of $73.00.
Xylem (NYSE:XYL) last posted its earnings results on Thursday, February 1st. The industrial products company reported $0.76 EPS for the quarter, hitting the consensus estimate of $0.76. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Xylem had a net margin of 7.03% and a return on equity of 17.95%. The firm’s revenue for the quarter was up 16.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.66 earnings per share. equities research analysts predict that Xylem will post 2.92 EPS for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 15th. Shareholders of record on Thursday, February 15th were given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 1.09%. This is an increase from Xylem’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend was Wednesday, February 14th. Xylem’s dividend payout ratio is presently 45.65%.
In other Xylem news, Director Curtis J. Crawford sold 7,948 shares of the company’s stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $71.77, for a total value of $570,427.96. Following the completion of the sale, the director now directly owns 55,245 shares of the company’s stock, valued at approximately $3,964,933.65. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Tomas Brannemo sold 1,151 shares of the company’s stock in a transaction dated Tuesday, February 27th. The stock was sold at an average price of $76.41, for a total transaction of $87,947.91. The disclosure for this sale can be found here. Insiders sold a total of 21,105 shares of company stock valued at $1,540,907 over the last ninety days. 0.75% of the stock is currently owned by insiders.
A number of hedge funds have recently modified their holdings of the business. Xact Kapitalforvaltning AB grew its position in Xylem by 17.9% in the 4th quarter. Xact Kapitalforvaltning AB now owns 38,383 shares of the industrial products company’s stock worth $2,618,000 after purchasing an additional 5,830 shares in the last quarter. Handelsbanken Fonder AB grew its position in Xylem by 1.4% in the 4th quarter. Handelsbanken Fonder AB now owns 706,000 shares of the industrial products company’s stock worth $48,149,000 after purchasing an additional 10,000 shares in the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. grew its position in Xylem by 38.3% in the 4th quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 12,267 shares of the industrial products company’s stock worth $837,000 after purchasing an additional 3,400 shares in the last quarter. Halsey Associates Inc. CT purchased a new position in Xylem in the fourth quarter valued at about $697,000. Finally, Meitav Dash Investments Ltd. purchased a new position in Xylem in the fourth quarter valued at about $1,194,000. 85.40% of the stock is owned by institutional investors and hedge funds.
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Xylem Inc is a water technology company. The Company designs, manufactures and services engineered solutions across a range of critical applications. It is an equipment and service provider for water and wastewater applications with a portfolio of products and services addressing the cycle of water, from collection, distribution and use to the return of water to the environment.
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