Xylem (NYSE:XYL) Stock Rating Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of Xylem (NYSE:XYL) from a hold rating to a strong sell rating in a report published on Thursday morning,Zacks reports.

Several other equities analysts have also recently issued reports on the company. The Goldman Sachs Group reduced their price objective on Xylem from $160.00 to $138.00 and set a “buy” rating on the stock in a research note on Wednesday. Mizuho set a $99.00 target price on shares of Xylem in a research note on Wednesday. Stifel Nicolaus dropped their target price on shares of Xylem from $141.00 to $114.00 and set a “buy” rating on the stock in a report on Wednesday. Oppenheimer reduced their price target on shares of Xylem from $150.00 to $135.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Citigroup decreased their price target on shares of Xylem from $148.00 to $130.00 and set a “buy” rating for the company in a report on Wednesday. Nine analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $121.31.

Xylem Stock Up 1.8%

Shares of Xylem stock opened at $92.41 on Thursday. The company has a quick ratio of 1.24, a current ratio of 1.39 and a debt-to-equity ratio of 0.23. The firm has a market cap of $21.19 billion, a P/E ratio of 20.44, a P/E/G ratio of 1.51 and a beta of 1.00. Xylem has a fifty-two week low of $87.40 and a fifty-two week high of $152.43. The business has a 50-day moving average price of $105.05 and a 200 day moving average price of $117.57.

Xylem (NYSE:XYL) last announced its quarterly earnings data on Tuesday, October 27th. The industrial products company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.45 by ($0.01). Xylem had a net margin of 11.94% and a return on equity of 12.06%. The firm had revenue of $2.20 billion for the quarter, compared to analyst estimates of $2.28 billion. During the same quarter in the previous year, the company earned $1.37 EPS. The company’s quarterly revenue was down 3.0% compared to the same quarter last year. On average, sell-side analysts forecast that Xylem will post 5.45 earnings per share for the current fiscal year.

Xylem Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, August 27th were issued a dividend of $0.43 per share. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $1.72 annualized dividend and a dividend yield of 1.9%. Xylem’s payout ratio is 40.95%.

Insider Activity at Xylem

In other news, Director D Koch acquired 11,000 shares of the company’s stock in a transaction that occurred on Thursday, October 29th. The shares were acquired at an average price of $89.60 per share, with a total value of $985,600.00. Following the acquisition, the director directly owned 12,247 shares in the company, valued at approximately $1,097,331.20. The trade was a 882.12% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.32% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jmac Enterprises LLC bought a new stake in shares of Xylem during the 3rd quarter worth about $537,000. Covestor Ltd boosted its holdings in shares of Xylem by 38.5% in the third quarter. Covestor Ltd now owns 583 shares of the industrial products company’s stock valued at $59,000 after acquiring an additional 162 shares in the last quarter. Markel Group Inc. bought a new position in shares of Xylem in the third quarter valued at approximately $1,244,000. Putney Financial Group LLC bought a new position in shares of Xylem in the third quarter valued at approximately $73,000. Finally, Mountain Pacific Investment Advisers LLC increased its stake in shares of Xylem by 5.5% during the third quarter. Mountain Pacific Investment Advisers LLC now owns 141,766 shares of the industrial products company’s stock valued at $14,357,000 after acquiring an additional 7,403 shares during the period. 87.96% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Director D. Christian Koch purchased 11,000 Xylem shares for approximately $985,600 at an average price of $89.60. The transaction increased his direct holdings more than eightfold and may signal confidence that the recent selloff has created an attractive entry point. Insider purchase report
• Positive Sentiment: Some analysts continue to see longer-term value. RBC Capital reaffirmed its buy rating, while RBC’s new coverage assigned a moderate-buy rating and a $125 price target, implying substantial upside from recent levels. RBC rating report
• Neutral Sentiment: Xylem announced divestitures and a new three-segment operating structure. The changes could sharpen strategic focus and improve portfolio efficiency, but execution and transition risks remain. Xylem restructuring report
• Negative Sentiment: Xylem’s latest quarter missed expectations: EPS was $1.44 versus $1.45 expected, revenue was $2.20 billion versus $2.28 billion expected, and sales declined 3% year over year. Management’s new 2026 adjusted-EPS ceiling of $5.45 is below the prior $5.55 floor, reinforcing concerns about weaker growth.
• Negative Sentiment: Barclays downgraded Xylem to equal weight from overweight, JPMorgan lowered its rating to underweight, and UBS, Stifel, BNP Paribas Exane, Citigroup and Oppenheimer reduced price targets. The revisions reflect diminished near-term earnings and valuation expectations. Barclays downgrade report
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential securities-law violations related to investor losses, adding legal uncertainty and another possible overhang for XYL shareholders. Investigation announcement

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that develops products and services for the transportation, treatment, testing and efficient use of water and wastewater. Its offerings support municipal water and wastewater utilities, industrial customers, commercial facilities and residential applications.

The company’s products and solutions include water and wastewater pumps, treatment systems, dewatering equipment, smart meters, monitoring and control technologies, leak detection tools, and data-driven analytics.