Xylem (NYSE:XYL) Downgraded to “Hold” Rating by Citigroup

Citigroup downgraded shares of Xylem (NYSE:XYL) from a strong-buy rating to a hold rating in a report published on Wednesday morning,Zacks.com reports.

Several other equities research analysts have also commented on XYL. Robert W. Baird upped their target price on Xylem from $139.00 to $148.00 and gave the company an “outperform” rating in a research report on Wednesday. TD Cowen cut their price target on Xylem from $138.00 to $125.00 and set a “hold” rating on the stock in a report on Wednesday, November 6th. Wolfe Research reiterated a “peer perform” rating on shares of Xylem in a research note on Thursday, December 12th. Royal Bank of Canada cut their target price on shares of Xylem from $163.00 to $162.00 and set an “outperform” rating on the stock in a research note on Friday, November 1st. Finally, Stifel Nicolaus decreased their price target on shares of Xylem from $166.00 to $150.00 and set a “buy” rating for the company in a research note on Friday, January 24th. Four research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, Xylem has an average rating of “Moderate Buy” and a consensus target price of $149.90.

Xylem Price Performance

Xylem stock opened at $131.11 on Wednesday. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.76 and a quick ratio of 1.42. Xylem has a one year low of $113.26 and a one year high of $146.08. The stock’s 50 day moving average is $120.95 and its 200 day moving average is $127.55. The firm has a market cap of $31.85 billion, a P/E ratio of 35.82, a P/E/G ratio of 2.36 and a beta of 1.07.

Xylem (NYSE:XYL) last posted its quarterly earnings data on Tuesday, February 4th. The industrial products company reported $1.18 earnings per share for the quarter, topping the consensus estimate of $1.12 by $0.06. The company had revenue of $2.30 billion during the quarter, compared to analysts’ expectations of $2.18 billion. Xylem had a net margin of 10.40% and a return on equity of 9.96%. Xylem’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.99 earnings per share. As a group, research analysts expect that Xylem will post 4.66 EPS for the current year.

Xylem Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 19th. Investors of record on Tuesday, February 18th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.22%. The ex-dividend date of this dividend is Tuesday, February 18th. This is a positive change from Xylem’s previous quarterly dividend of $0.36. Xylem’s dividend payout ratio is currently 39.34%.

Hedge Funds Weigh In On Xylem

A number of hedge funds have recently added to or reduced their stakes in the stock. First Trust Direct Indexing L.P. lifted its holdings in shares of Xylem by 0.9% in the third quarter. First Trust Direct Indexing L.P. now owns 9,070 shares of the industrial products company’s stock valued at $1,225,000 after purchasing an additional 78 shares in the last quarter. Angeles Wealth Management LLC raised its position in Xylem by 3.6% in the 3rd quarter. Angeles Wealth Management LLC now owns 2,462 shares of the industrial products company’s stock valued at $332,000 after buying an additional 86 shares during the last quarter. Farther Finance Advisors LLC lifted its stake in Xylem by 6.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,412 shares of the industrial products company’s stock valued at $191,000 after acquiring an additional 87 shares in the last quarter. Clear Creek Financial Management LLC boosted its holdings in Xylem by 4.3% during the 4th quarter. Clear Creek Financial Management LLC now owns 2,315 shares of the industrial products company’s stock worth $269,000 after acquiring an additional 96 shares during the last quarter. Finally, Bleakley Financial Group LLC grew its stake in shares of Xylem by 2.3% in the 4th quarter. Bleakley Financial Group LLC now owns 4,359 shares of the industrial products company’s stock worth $506,000 after acquiring an additional 96 shares in the last quarter. Institutional investors and hedge funds own 87.96% of the company’s stock.

About Xylem

Xylem Inc, together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands.