Xylem Inc. (NYSE:XYL) Sees Significant Decline in Short Interest

Xylem Inc. (NYSE:XYL) was the target of a large decrease in short interest in March. As of March 13th, there was short interest totaling 4,037,620 shares, a decrease of 16.5% from the February 26th total of 4,836,020 shares. Based on an average trading volume of 1,875,202 shares, the days-to-cover ratio is currently 2.2 days. Approximately 1.7% of the shares of the stock are short sold.

Xylem Price Performance

Shares of Xylem stock opened at $117.58 on Monday. The stock has a market capitalization of $28.59 billion, a P/E ratio of 29.99, a PEG ratio of 1.68 and a beta of 1.17. The business has a 50 day simple moving average of $129.80 and a two-hundred day simple moving average of $138.42. Xylem has a 12 month low of $100.47 and a 12 month high of $154.27. 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 issued its quarterly earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.During the same period last year, the firm earned $1.18 EPS. Xylem’s quarterly revenue 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 predict that Xylem will post 4.65 EPS for the current fiscal year.

Xylem Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th were paid a dividend of $0.43 per share. This is a boost from Xylem’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Tuesday, February 24th. This represents a $1.72 annualized dividend and a yield of 1.5%. Xylem’s dividend payout ratio is presently 43.88%.

Xylem announced that its board has initiated a share buyback program on Wednesday, February 25th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the industrial products company to reacquire up to 4.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Xylem

Hedge funds and other institutional investors have recently modified their holdings of the business. State of Wyoming grew its stake in Xylem by 10.4% during the 3rd quarter. State of Wyoming now owns 756 shares of the industrial products company’s stock valued at $112,000 after acquiring an additional 71 shares in the last quarter. Orion Porfolio Solutions LLC lifted its stake in Xylem by 1.0% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 7,802 shares of the industrial products company’s stock worth $1,151,000 after purchasing an additional 74 shares in the last quarter. Journey Strategic Wealth LLC boosted its holdings in shares of Xylem by 1.5% during the 3rd quarter. Journey Strategic Wealth LLC now owns 5,107 shares of the industrial products company’s stock worth $753,000 after purchasing an additional 77 shares during the last quarter. Quest Investment Management LLC boosted its holdings in shares of Xylem by 1.0% during the 3rd quarter. Quest Investment Management LLC now owns 7,588 shares of the industrial products company’s stock worth $1,119,000 after purchasing an additional 77 shares during the last quarter. Finally, Keel Point LLC grew its position in shares of Xylem by 4.6% in the third quarter. Keel Point LLC now owns 1,784 shares of the industrial products company’s stock valued at $263,000 after purchasing an additional 79 shares in the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently weighed in on XYL shares. Stifel Nicolaus cut their price target on Xylem from $178.00 to $175.00 and set a “buy” rating for the company in a research note on Wednesday, February 11th. UBS Group reissued a “buy” rating and issued a $155.00 price objective on shares of Xylem in a report on Friday, February 13th. Royal Bank Of Canada reduced their target price on Xylem from $176.00 to $162.00 and set an “outperform” rating for the company in a research note on Wednesday, February 11th. TD Cowen reissued a “hold” rating on shares of Xylem in a research note on Monday, February 23rd. Finally, Robert W. Baird set a $161.00 price objective on shares of Xylem in a research report on Wednesday, February 11th. Nine investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $158.08.

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.