Xylem Sees Unusually High Options Volume (NYSE:XYL)

Xylem Inc. (NYSE:XYL) was the recipient of unusually large options trading activity on Monday. Investors bought 2,610 call options on the stock. This represents an increase of 278% compared to the typical daily volume of 691 call options.

Xylem Stock Down 0.9%

XYL traded down $1.06 during trading on Monday, reaching $120.05. 279,978 shares of the stock were exchanged, compared to its average volume of 1,932,764. The stock has a market cap of $29.19 billion, a P/E ratio of 30.62, a price-to-earnings-growth ratio of 1.74 and a beta of 1.18. Xylem has a twelve month low of $107.04 and a twelve month high of $154.27. The stock’s 50 day moving average price is $125.00 and its two-hundred day moving average price is $136.46. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62.

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, meeting the consensus estimate of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. Xylem’s revenue was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $1.18 EPS. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. Equities analysts expect that Xylem will post 4.65 EPS for the current year.

Xylem Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, February 24th were issued a $0.43 dividend. The ex-dividend date of this dividend was Tuesday, February 24th. This represents a $1.72 annualized dividend and a yield of 1.4%. This is a boost from Xylem’s previous quarterly dividend of $0.40. Xylem’s payout ratio is presently 43.88%.

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

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Royal Bank Of Canada dropped their target price on shares of Xylem from $176.00 to $162.00 and set an “outperform” rating on the stock in a report on Wednesday, February 11th. Mizuho set a $138.00 price objective on shares of Xylem in a report on Wednesday, February 11th. JPMorgan Chase & Co. lowered their price objective on shares of Xylem from $170.00 to $160.00 and set an “overweight” rating on the stock in a report on Thursday. Robert W. Baird set a $161.00 target price on shares of Xylem in a report on Wednesday, February 11th. Finally, Weiss Ratings cut shares of Xylem from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, April 6th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Xylem presently has a consensus rating of “Moderate Buy” and an average price target of $155.31.

Institutional Investors Weigh In On Xylem

A number of large investors have recently bought and sold shares of XYL. J. Stern & Co. LLP grew its stake in Xylem by 12,326.6% during the fourth quarter. J. Stern & Co. LLP now owns 45,448,168 shares of the industrial products company’s stock worth $6,189,132,000 after buying an additional 45,082,435 shares in the last quarter. Norges Bank acquired a new stake in Xylem during the fourth quarter worth about $361,012,000. Schroder Investment Management Group grew its stake in Xylem by 2,055.2% during the third quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company’s stock worth $171,687,000 after buying an additional 1,137,342 shares in the last quarter. Swedbank AB lifted its position in shares of Xylem by 19.0% during the 3rd quarter. Swedbank AB now owns 5,197,753 shares of the industrial products company’s stock worth $766,669,000 after buying an additional 830,821 shares during the last quarter. Finally, Balyasny Asset Management L.P. lifted its position in shares of Xylem by 346.2% during the 3rd quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company’s stock worth $105,160,000 after buying an additional 553,152 shares during the last quarter. 87.96% of the stock is currently owned by institutional investors and hedge funds.

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.