Xylem (NYSE:XYL) Trading 6.4% Higher on Better-Than-Expected Earnings

Xylem Inc. (NYSE:XYL) rose 6.4% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $131.93 and last traded at $130.65. Approximately 367,145 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 1,206,341 shares. The stock had previously closed at $122.80.

The industrial products company reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.12 by $0.06. Xylem had a return on equity of 9.61% and a net margin of 9.85%. The business had revenue of $2.30 billion for the quarter, compared to analysts’ expectations of $2.18 billion. The business’s quarterly revenue was up 8.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.99 EPS.

Xylem Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 19th. Shareholders 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 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 (DPR) is 43.72%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Robert W. Baird increased their target price on shares of Xylem from $139.00 to $148.00 and gave the stock an “outperform” rating in a report on Wednesday. TD Cowen cut their price objective on Xylem from $138.00 to $125.00 and set a “hold” rating on the stock in a research report on Wednesday, November 6th. Stifel Nicolaus decreased their target price on Xylem from $166.00 to $150.00 and set a “buy” rating for the company in a report on Friday, January 24th. Wolfe Research reiterated a “peer perform” rating on shares of Xylem in a report on Thursday, December 12th. Finally, Royal Bank of Canada decreased their price objective on shares of Xylem from $163.00 to $162.00 and set an “outperform” rating for the company in a report on Friday, November 1st. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $149.90.

Hedge Funds Weigh In On Xylem

Institutional investors and hedge funds have recently made changes to their positions in the business. Impax Asset Management Group plc increased its stake in Xylem by 231.5% during the 4th quarter. Impax Asset Management Group plc now owns 5,561,661 shares of the industrial products company’s stock valued at $644,039,000 after purchasing an additional 3,883,845 shares in the last quarter. Victory Capital Management Inc. increased its position in shares of Xylem by 42.9% during the fourth quarter. Victory Capital Management Inc. now owns 2,326,024 shares of the industrial products company’s stock valued at $269,865,000 after acquiring an additional 698,745 shares in the last quarter. Swedbank AB lifted its position in Xylem by 23.1% in the 4th quarter. Swedbank AB now owns 3,683,201 shares of the industrial products company’s stock valued at $427,325,000 after acquiring an additional 691,618 shares in the last quarter. Erste Asset Management GmbH purchased a new stake in Xylem during the 3rd quarter valued at $68,593,000. Finally, B. Metzler seel. Sohn & Co. Holding AG bought a new stake in shares of Xylem in the 3rd quarter worth $52,169,000. Institutional investors own 87.96% of the company’s stock.

Xylem Stock Up 1.3 %

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.96 and a quick ratio of 1.42. The stock has a market cap of $31.95 billion, a PE ratio of 38.45, a PEG ratio of 2.11 and a beta of 1.07. The company has a 50 day moving average price of $120.74 and a two-hundred day moving average price of $127.58.

Xylem Company Profile

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.