UBS Group Downgrades Xylem (NYSE:XYL) to Neutral

Xylem (NYSE:XYL) was downgraded by investment analysts at UBS Group from a “buy” rating to a “neutral” rating in a note issued to investors on Tuesday, Marketbeat Ratings reports. They presently have a $132.00 price target on the industrial products company’s stock, down from their previous price target of $152.00. UBS Group’s price target would indicate a potential upside of 8.70% from the company’s current price.

Several other brokerages have also recently weighed in on XYL. Royal Bank Of Canada reduced their price objective on Xylem from $176.00 to $162.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 11th. Oppenheimer reissued an “outperform” rating and set a $160.00 price objective (down from $165.00) on shares of Xylem in a research note on Wednesday, April 1st. William Blair began coverage on Xylem in a research note on Monday, January 26th. They set an “outperform” rating on the stock. Citigroup cut their target price on Xylem from $182.00 to $174.00 and set a “buy” rating on the stock in a research note on Wednesday, February 11th. Finally, The Goldman Sachs Group set a $158.00 target price on Xylem in a research note on Wednesday, February 11th. Eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $153.77.

Xylem Trading Up 1.2%

Shares of NYSE XYL opened at $121.43 on Tuesday. The business’s 50 day moving average is $124.31 and its two-hundred day moving average is $135.94. 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 has a 1-year low of $112.98 and a 1-year high of $154.27. The stock has a market capitalization of $29.52 billion, a P/E ratio of 30.98, a PEG ratio of 1.72 and a beta of 1.18.

Xylem (NYSE:XYL) last issued its quarterly earnings data on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, hitting the consensus estimate of $1.42. Xylem had a return on equity of 11.11% and a net margin of 10.59%.During the same quarter in the previous year, the company earned $1.18 EPS. The firm’s 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, research analysts expect that Xylem will post 5.47 EPS for the current year.

Xylem declared that its board has approved a share repurchase plan on Wednesday, February 25th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the industrial products company to reacquire up to 4.8% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of XYL. J. Stern & Co. LLP boosted its holdings in shares of Xylem by 12,326.6% in the fourth quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company’s stock valued at $6,189,132,000 after purchasing an additional 45,082,435 shares during the period. Norges Bank purchased a new stake in shares of Xylem in the fourth quarter valued at approximately $361,012,000. Schroder Investment Management Group boosted its holdings in shares of 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 valued at $171,687,000 after purchasing an additional 1,137,342 shares during the period. Swedbank AB boosted its holdings in shares of Xylem by 19.0% in the third quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company’s stock valued at $766,669,000 after purchasing an additional 830,821 shares during the period. Finally, Balyasny Asset Management L.P. boosted its holdings in shares of Xylem by 346.2% in the third quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company’s stock valued at $105,160,000 after purchasing an additional 553,152 shares during the period. Institutional investors own 87.96% of the company’s stock.

Xylem Company 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.