Stock Traders Purchase High Volume of Xylem Call Options (NYSE:XYL)

Xylem Inc. (NYSE:XYL) was the recipient of some unusual options trading on Tuesday. Investors bought 2,814 call options on the company. This represents an increase of approximately 150% compared to the typical daily volume of 1,124 call options.

Analyst Upgrades and Downgrades

XYL has been the subject of a number of recent research reports. Barclays lowered their price target on shares of Xylem from $156.00 to $154.00 and set an “overweight” rating for the company in a report on Wednesday, April 29th. JPMorgan Chase & Co. decreased their target price on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating on the stock in a research report on Thursday, April 16th. UBS Group boosted their price target on Xylem from $132.00 to $133.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Citigroup reduced their price target on Xylem from $174.00 to $168.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Finally, TD Cowen restated a “hold” rating on shares of Xylem in a report on Monday, February 23rd. Seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $152.77.

Insider Buying and Selling at Xylem

In related news, CAO Geri-Michelle Mcshane sold 4,269 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total transaction of $501,436.74. Following the sale, the chief accounting officer owned 3,605 shares of the company’s stock, valued at $423,443.30. This trade represents a 54.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jerome A. Peribere acquired 1,210 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were bought at an average price of $116.61 per share, with a total value of $141,098.10. Following the transaction, the director owned 27,209 shares in the company, valued at $3,172,841.49. This represents a 4.65% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.32% of the company’s stock.

Hedge Funds Weigh In On Xylem

Hedge funds and other institutional investors have recently modified their holdings of the company. Fisher Asset Management LLC lifted its holdings in shares of Xylem by 6.4% in the 3rd quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company’s stock worth $59,681,000 after purchasing an additional 24,352 shares during the last quarter. LGT Capital Partners LTD. grew its stake in Xylem by 18.4% during the 3rd quarter. LGT Capital Partners LTD. now owns 268,704 shares of the industrial products company’s stock worth $39,634,000 after buying an additional 41,730 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Xylem by 2,309.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company’s stock worth $54,314,000 after buying an additional 413,904 shares during the period. Callahan Advisors LLC bought a new stake in Xylem in the fourth quarter valued at $1,721,000. Finally, Abacus Wealth Partners LLC bought a new stake in Xylem in the fourth quarter valued at $1,663,000. 87.96% of the stock is owned by institutional investors and hedge funds.

Xylem Trading Down 0.3%

XYL stock traded down $0.36 on Tuesday, hitting $111.41. 313,565 shares of the company were exchanged, compared to its average volume of 2,010,494. Xylem has a twelve month low of $105.29 and a twelve month high of $154.27. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10. The business’s fifty day moving average is $114.17 and its two-hundred day moving average is $126.01. The stock has a market capitalization of $26.48 billion, a price-to-earnings ratio of 27.68, a price-to-earnings-growth ratio of 1.59 and a beta of 1.05.

Xylem (NYSE:XYL) last announced its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.03. The company had revenue of $2.12 billion during the quarter, compared to analysts’ expectations of $2.11 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. The business’s quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, research analysts forecast that Xylem will post 5.51 earnings per share for the current year.

Xylem Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, May 28th will be given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, May 28th. Xylem’s payout ratio is 42.79%.

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

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.