Xylem (XYL) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Xylem (NYSE:XYL) from a buy rating to a hold rating in a report released on Wednesday.

According to Zacks, “Year to date, Xylem's shares have outperformed the industry. The company believes robust semiconductor and industrial end-markets' demand will continue to drive its revenues in the quarters ahead, while greater operational efficacy will boost bottom-line results. Integration process of the Analytics and Sensus businesses is right on track and is expected to drive its Measurement and Control Solutions segment's performance in the upcoming quarters. Xylem also intends to fund strategic investment projects and boost shareholders' return on the back of increased cost savings. However, Xylem's stock looks overvalued compared to the industry. Moreover, we expect that headwinds such as a stronger U.S. dollar, supply chain challenges or unfavorable climatic conditions might weigh over the company's near-term results.”

A number of other brokerages also recently weighed in on XYL. Seaport Global Securities reiterated a buy rating on shares of Xylem in a report on Wednesday, November 1st. Canaccord Genuity reiterated a hold rating and set a $65.00 price target on shares of Xylem in a report on Wednesday, November 1st. Oppenheimer increased their price target on Xylem from $66.00 to $75.00 and gave the stock an outperform rating in a report on Wednesday, November 1st. BMO Capital Markets increased their price target on Xylem from $74.00 to $76.00 and gave the stock an outperform rating in a report on Wednesday, November 1st. Finally, Stifel Nicolaus reiterated a hold rating and set a $63.00 price target on shares of Xylem in a report on Friday, October 13th. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The company currently has an average rating of Buy and an average target price of $65.17.

Shares of Xylem (NYSE:XYL) opened at $68.19 on Wednesday. The firm has a market capitalization of $12,209.21, a price-to-earnings ratio of 29.69, a P/E/G ratio of 1.90 and a beta of 1.17. Xylem has a 1-year low of $46.67 and a 1-year high of $69.88. The company has a quick ratio of 1.26, a current ratio of 1.76 and a debt-to-equity ratio of 0.88.

Xylem (NYSE:XYL) last issued its quarterly earnings results on Tuesday, October 31st. The industrial products company reported $0.65 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.64 by $0.01. Xylem had a return on equity of 17.45% and a net margin of 8.70%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same period last year, the business posted $0.54 EPS. The business’s revenue was up 33.2% compared to the same quarter last year. equities analysts anticipate that Xylem will post 2.39 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 6th. Stockholders of record on Thursday, November 2nd were paid a $0.18 dividend. The ex-dividend date of this dividend was Wednesday, November 1st. This represents a $0.72 annualized dividend and a dividend yield of 1.06%. Xylem’s dividend payout ratio is presently 41.86%.

In other news, Director Steven R. Loranger sold 37,700 shares of the firm’s stock in a transaction dated Monday, November 6th. The stock was sold at an average price of $66.25, for a total value of $2,497,625.00. Following the completion of the sale, the director now directly owns 58,831 shares in the company, valued at approximately $3,897,553.75. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Colin R. Sabol sold 38,070 shares of the firm’s stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $65.81, for a total value of $2,505,386.70. Following the completion of the sale, the insider now owns 61,979 shares of the company’s stock, valued at $4,078,837.99. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 83,270 shares of company stock valued at $5,501,312. 0.75% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Public Employees Retirement System of Ohio lifted its position in Xylem by 10.7% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 435,639 shares of the industrial products company’s stock valued at $27,284,000 after acquiring an additional 42,266 shares in the last quarter. GSA Capital Partners LLP bought a new position in Xylem in the 3rd quarter valued at about $420,000. IFM Investors Pty Ltd bought a new position in Xylem in the 3rd quarter valued at about $550,000. California Public Employees Retirement System lifted its position in Xylem by 5.4% in the 3rd quarter. California Public Employees Retirement System now owns 518,932 shares of the industrial products company’s stock valued at $32,501,000 after acquiring an additional 26,432 shares in the last quarter. Finally, Janney Montgomery Scott LLC lifted its position in Xylem by 15.3% in the 3rd quarter. Janney Montgomery Scott LLC now owns 16,804 shares of the industrial products company’s stock valued at $1,052,000 after acquiring an additional 2,227 shares in the last quarter. Institutional investors own 85.58% of the company’s stock.

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Xylem Company Profile

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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