Xylem (NYSE:XYL) Stock Rating Lowered by Zacks Research

Xylem (NYSE:XYL) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Thursday, Zacks reports.

Several other equities research analysts have also issued reports on XYL. Oppenheimer dropped their price objective on Xylem from $150.00 to $135.00 and set an “outperform” rating for the company in a research note on Wednesday. Jefferies Financial Group upped their target price on Xylem from $145.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, August 24th. Barclays cut Xylem from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $139.00 to $104.00 in a report on Wednesday. JPMorgan Chase & Co. downgraded Xylem from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $118.00 to $90.00 in a research report on Wednesday. Finally, Citigroup cut their price objective on Xylem from $148.00 to $130.00 and set a “buy” rating for the company in a report on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $121.31.

Xylem Stock Performance

NYSE XYL opened at $92.41 on Thursday. The company’s 50 day simple moving average is $105.05 and its two-hundred day simple moving average is $117.57. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.39 and a quick ratio of 1.24. Xylem has a 1 year low of $87.40 and a 1 year high of $152.43. The stock has a market capitalization of $21.19 billion, a PE ratio of 20.44, a P/E/G ratio of 1.51 and a beta of 1.00.

Xylem (NYSE:XYL) last released its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $1.44 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.01). The firm had revenue of $2.20 billion for the quarter, compared to analysts’ expectations of $2.28 billion. Xylem had a net margin of 11.94% and a return on equity of 12.06%. The firm’s revenue for the quarter was down 3.0% on a year-over-year basis. During the same quarter last year, the firm earned $1.37 earnings per share. Analysts predict that Xylem will post 5.45 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director D Koch purchased 11,000 shares of the stock in a transaction on Thursday, October 29th. The shares were acquired at an average price of $89.60 per share, for a total transaction of $985,600.00. Following the completion of the transaction, the director directly owned 12,247 shares of the company’s stock, valued at approximately $1,097,331.20. This trade represents a 882.12% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. 0.32% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Xylem

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Jmac Enterprises LLC bought a new stake in Xylem in the 3rd quarter worth $537,000. Covestor Ltd increased its position in shares of Xylem by 38.5% in the third quarter. Covestor Ltd now owns 583 shares of the industrial products company’s stock valued at $59,000 after acquiring an additional 162 shares during the period. Markel Group Inc. bought a new position in shares of Xylem during the third quarter valued at about $1,244,000. Putney Financial Group LLC bought a new position in shares of Xylem during the third quarter valued at about $73,000. Finally, Mountain Pacific Investment Advisers LLC boosted its holdings in shares of Xylem by 5.5% during the third quarter. Mountain Pacific Investment Advisers LLC now owns 141,766 shares of the industrial products company’s stock worth $14,357,000 after purchasing an additional 7,403 shares during the period. 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 Xylem shares for approximately $985,600 at an average price of $89.60. The transaction increased his direct holdings more than eightfold and may signal confidence that the recent selloff has created an attractive entry point. Insider purchase report
• Positive Sentiment: Some analysts continue to see longer-term value. RBC Capital reaffirmed its buy rating, while RBC’s new coverage assigned a moderate-buy rating and a $125 price target, implying substantial upside from recent levels. RBC rating report
• Neutral Sentiment: Xylem announced divestitures and a new three-segment operating structure. The changes could sharpen strategic focus and improve portfolio efficiency, but execution and transition risks remain. Xylem restructuring report
• Negative Sentiment: Xylem’s latest quarter missed expectations: EPS was $1.44 versus $1.45 expected, revenue was $2.20 billion versus $2.28 billion expected, and sales declined 3% year over year. Management’s new 2026 adjusted-EPS ceiling of $5.45 is below the prior $5.55 floor, reinforcing concerns about weaker growth.
• Negative Sentiment: Barclays downgraded Xylem to equal weight from overweight, JPMorgan lowered its rating to underweight, and UBS, Stifel, BNP Paribas Exane, Citigroup and Oppenheimer reduced price targets. The revisions reflect diminished near-term earnings and valuation expectations. Barclays downgrade report
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential securities-law violations related to investor losses, adding legal uncertainty and another possible overhang for XYL shareholders. Investigation announcement

Xylem Company Profile

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.