Investors Buy Large Volume of Xylem Put Options (NYSE:XYL)

Xylem Inc. (NYSE:XYL – Get Free Report) saw unusually large options trading activity on Wednesday. Traders acquired 10,022 put options on the stock. This represents an increase of 358% compared to the average volume of 2,188 put options.

Xylem Price Performance

Shares of XYL opened at $90.74 on Friday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.24 and a current ratio of 1.39. The firm’s 50-day simple moving average is $105.47 and its two-hundred day simple moving average is $117.80. Xylem has a fifty-two week low of $87.40 and a fifty-two week high of $154.27. The stock has a market cap of $20.81 billion, a PE ratio of 20.08, a price-to-earnings-growth ratio of 1.47 and a beta of 1.00.

Xylem (NYSE:XYL – Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The industrial products company reported $1.44 earnings per share for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.01). The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.28 billion. Xylem had a net margin of 11.94% and a return on equity of 12.06%. The firm’s quarterly revenue was down 3.0% on a year-over-year basis. During the same period last year, the business earned $1.37 EPS. Analysts anticipate that Xylem will post 5.47 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 was Thursday, August 27th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.9%. Xylem’s dividend payout ratio is presently 40.95%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on XYL shares. Mizuho set a $99.00 price objective on 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 for the company in a report on Wednesday. Wolfe Research started coverage on Xylem in a report on Tuesday, September 15th. They set a “peer perform” rating on the stock. Weiss Ratings cut Xylem from a “hold (c)” rating to a “sell (d)” rating in a report on Wednesday. Finally, JPMorgan Chase & Co. cut Xylem from an “overweight” rating to a “neutral” rating and reduced their target price for the company from $118.00 to $90.00 in a research note on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $121.31.

View Our Latest Research Report on Xylem

Insiders Place Their Bets

In related news, Director D Koch purchased 11,000 shares of the firm’s stock in a transaction dated Thursday, October 29th. The shares were purchased 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 of the company’s stock, valued at approximately $1,097,331.20. This represents a 882.12% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Xylem

A number of hedge funds have recently added to or reduced their stakes in XYL. XXEC Inc. bought a new stake in shares of Xylem in the 2nd quarter worth $850,841,000. BlackRock Inc. bought a new position in shares of Xylem during the second quarter valued at $2,959,730,000. Bank of New York Mellon Corp bought a new position in shares of Xylem during the second quarter valued at $552,313,000. Hsbc Holdings PLC purchased a new stake in shares of Xylem during the second quarter valued at $319,785,000. Finally, Deutsche Bank AG purchased a new stake in shares of Xylem during the second quarter valued at $223,165,000. 87.96% of the stock is currently owned by hedge funds and other institutional investors.

Xylem News Summary

Here are the key news stories impacting Xylem this week:

  • Positive Sentiment: Director D. Christian Koch purchased 11,000 shares for approximately $985,600, increasing his direct ownership more than eightfold. The sizable insider purchase may signal confidence that the selloff has created attractive value. Insider purchase article
  • Positive Sentiment: RBC maintained a positive view and initiated coverage with a “moderate buy” rating and a $125 price target, implying substantial potential upside from recent trading levels. RBC rating article
  • Positive Sentiment: Call-option activity surged to 20,508 contracts, roughly 771% above typical volume, indicating that some traders are positioning for a recovery.
  • Neutral Sentiment: Xylem announced divestitures and a new three-segment structure. The changes could sharpen strategic focus and improve portfolio efficiency, although execution and transition risks remain. Restructuring article
  • Neutral Sentiment: Analyst opinion is divided: several firms retained buy or outperform ratings, but most reduced their price targets. The average published target remains well above the current share price, suggesting longer-term upside if growth recovers.
  • Negative Sentiment: Third-quarter revenue of $2.20 billion missed the $2.28 billion consensus estimate, while EPS of $1.44 narrowly missed expectations. Revenue declined 3% year over year, reinforcing concerns about near-term demand and growth.
  • Negative Sentiment: Barclays downgraded Xylem to equal weight, JPMorgan moved to underweight with a $90 target, and UBS cut its target to $99 with a neutral rating. Stifel, BNP Paribas Exane, Citigroup and Oppenheimer also lowered targets, weighing on sentiment. Barclays downgrade article

Xylem Company Profile

(Get Free Report)

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.

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