Redwood Grove Capital LLC Takes Position in Xylem Inc. $XYL

Redwood Grove Capital LLC purchased a new position in shares of Xylem Inc. (NYSE:XYL) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 246,112 shares of the industrial products company’s stock, valued at approximately $29,093,000. Xylem comprises 7.4% of Redwood Grove Capital LLC’s investment portfolio, making the stock its 2nd largest holding.

A number of other hedge funds also recently modified their holdings of the stock. Wexford Capital LP bought a new stake in shares of Xylem in the third quarter valued at $27,000. Commonwealth Retirement Investments LLC purchased a new position in shares of Xylem during the 4th quarter valued at $27,000. Dunhill Financial LLC bought a new position in shares of Xylem during the 2nd quarter worth $30,000. Avalon Trust Co bought a new position in shares of Xylem during the 2nd quarter worth $35,000. Finally, Entrust Financial LLC purchased a new stake in Xylem in the 4th quarter worth about $45,000. Institutional investors own 87.96% of the company’s stock.

Xylem Stock Performance

Shares of XYL opened at $112.76 on Wednesday. Xylem Inc. has a 52-week low of $105.29 and a 52-week high of $154.27. The stock’s 50-day simple moving average is $118.11 and its 200 day simple moving average is $119.31. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.24 and a current ratio of 1.61. The stock has a market capitalization of $26.33 billion, a price-to-earnings ratio of 26.85, a price-to-earnings-growth ratio of 1.58 and a beta of 1.02.

Xylem (NYSE:XYL) last posted its earnings results on Tuesday, July 28th. The industrial products company reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.34 by $0.12. Xylem had a return on equity of 11.77% and a net margin of 11.15%.The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same quarter in the previous year, the firm earned $1.26 EPS. The company’s quarterly revenue was up 1.5% compared to the same quarter last year. Xylem has set its FY 2026 guidance at 5.550-5.700 EPS. Research analysts forecast that Xylem Inc. will post 5.66 EPS for the current fiscal year.

Xylem Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, August 27th will be paid a dividend of $0.43 per share. The ex-dividend date of this dividend is Thursday, August 27th. This represents a $1.72 annualized dividend and a yield of 1.5%. Xylem’s payout ratio is currently 40.95%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. Stifel Nicolaus boosted their price objective on Xylem from $157.00 to $160.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. CLSA upgraded shares of Xylem to a “hold” rating in a research note on Thursday, June 25th. Royal Bank Of Canada boosted their price target on shares of Xylem from $159.00 to $164.00 and gave the company an “outperform” rating in a research report on Wednesday, July 29th. Robert W. Baird raised their price objective on shares of Xylem from $163.00 to $165.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Finally, Citigroup reaffirmed a “buy” rating on shares of Xylem in a report on Wednesday, July 29th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $155.00.

About Xylem

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.