Xylem Sees Unusually Large Options Volume (NYSE:XYL)

Xylem Inc. (NYSE:XYL) was the target of some unusual options trading activity on Monday. Investors bought 2,610 call options on the company. This is an increase of 278% compared to the typical volume of 691 call options.

Analysts Set New Price Targets

A number of analysts have commented on XYL shares. UBS Group reduced their target price on shares of Xylem from $155.00 to $152.00 and set a “buy” rating for the company in a report on Thursday, April 9th. Robert W. Baird set a $161.00 target price on shares of Xylem in a report on Wednesday, February 11th. Citigroup reduced their target price on shares of Xylem from $182.00 to $174.00 and set a “buy” rating for the company in a report on Wednesday, February 11th. Oppenheimer reaffirmed an “outperform” rating and set a $160.00 target price (down from $165.00) on shares of Xylem in a report on Wednesday, April 1st. Finally, Barclays reduced their target price on shares of Xylem from $166.00 to $156.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $155.31.

Xylem Stock Performance

Shares of NYSE XYL opened at $120.46 on Tuesday. The firm has a fifty day moving average price of $124.60 and a 200-day moving average price of $136.25. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.62 and a quick ratio of 1.28. The stock has a market cap of $29.29 billion, a PE ratio of 30.73, a price-to-earnings-growth ratio of 1.74 and a beta of 1.18. Xylem has a 1 year low of $107.04 and a 1 year high of $154.27.

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, hitting 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 earnings per share. The company’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. Equities analysts anticipate that Xylem will post 5.47 earnings per share for the current fiscal year.

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

Xylem Increases Dividend

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

Hedge Funds Weigh In On Xylem

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Breakwater Capital Group boosted its position in shares of Xylem by 24.8% during the first quarter. Breakwater Capital Group now owns 2,016 shares of the industrial products company’s stock worth $241,000 after acquiring an additional 400 shares during the last quarter. Fifth Third Wealth Advisors LLC lifted its position in Xylem by 21.9% during the first quarter. Fifth Third Wealth Advisors LLC now owns 4,439 shares of the industrial products company’s stock valued at $530,000 after purchasing an additional 797 shares during the last quarter. OP Asset Management Ltd bought a new position in Xylem during the first quarter valued at $4,550,000. Assenagon Asset Management S.A. lifted its position in Xylem by 6.9% during the first quarter. Assenagon Asset Management S.A. now owns 295,610 shares of the industrial products company’s stock valued at $35,325,000 after purchasing an additional 19,114 shares during the last quarter. Finally, Keudell Morrison Wealth Management lifted its position in Xylem by 31.3% during the first quarter. Keudell Morrison Wealth Management now owns 3,010 shares of the industrial products company’s stock valued at $360,000 after purchasing an additional 718 shares during the last quarter. 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.