Xylem (NYSE:XYL) to Repurchase $1.50 billion in Stock

Xylem (NYSE:XYL) announced that its Board of Directors has initiated a stock repurchase program on Wednesday, February 25th, RTT News reports. The company plans 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 programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Weiss Ratings reiterated a “buy (b-)” rating on shares of Xylem in a research report on Monday, December 29th. Wall Street Zen downgraded shares of Xylem from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. UBS Group reissued a “buy” rating and issued a $155.00 target price on shares of Xylem in a research note on Friday, February 13th. Barclays lowered their target price on Xylem from $166.00 to $156.00 and set an “overweight” rating on the stock in a report on Wednesday, February 11th. Finally, Mizuho set a $138.00 price target on Xylem in a report on Wednesday, February 11th. Nine investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $158.08.

Xylem Stock Up 0.3%

Shares of XYL opened at $128.46 on Thursday. The company’s 50-day moving average price is $136.96 and its 200 day moving average price is $141.29. Xylem has a 12-month low of $100.47 and a 12-month high of $154.27. The company has a current ratio of 1.62, a quick ratio of 1.28 and a debt-to-equity ratio of 0.12. The firm has a market cap of $31.28 billion, a P/E ratio of 32.77, a price-to-earnings-growth ratio of 1.83 and a beta of 1.17.

Xylem (NYSE:XYL) last announced its earnings results 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 net margin of 10.59% and a return on equity of 11.11%. The company’s revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.18 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. On average, sell-side analysts forecast that Xylem will post 4.65 earnings per share for the current year.

Xylem Increases Dividend

The company 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 dividend of $0.43 per share. This is an increase from Xylem’s previous quarterly dividend of $0.40. This represents a $1.72 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Tuesday, February 24th. Xylem’s dividend payout ratio (DPR) is 43.88%.

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.