Xylem (XYL) Downgraded by Zacks Investment Research

Xylem (NYSE:XYL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.

According to Zacks, “Over the last three months, Xylem’s shares have outperformed the industry. The company reported robust fourth-quarter 2017 results. Quarterly adjusted earnings of 76 cents per share, exceeded the year-ago tally by 12%. The company believes improving wastewater transport, dewatering, gas, software & services and analytics business will continue to bolster its revenues in the quarters ahead. Moreover, Xylem noted that addition of Pure Technologies and EmNet will enhance its competency. Profitability in the upcoming quarters is anticipated to improve on the back of stronger top-line growth and ongoing productivity initiatives. However, over the last three months, Xylem’s shares have looks overvalued compared to the industry. Challenging oil and gas market conditions might hurt the company’s results in the quarters ahead. Moreover, a sudden supply chain issue might also prove fatal going forward.”

Several other equities analysts have also recently issued reports on XYL. Canaccord Genuity reaffirmed a “hold” rating and issued a $75.00 price objective on shares of Xylem in a research note on Sunday, January 28th. BMO Capital Markets reaffirmed a “buy” rating and issued a $83.00 price objective on shares of Xylem in a research note on Friday, January 26th. Seaport Global Securities reaffirmed a “buy” rating and issued a $83.00 price objective on shares of Xylem in a research note on Friday, February 2nd. Oppenheimer lifted their price objective on shares of Xylem to $82.00 and gave the stock an “outperform” rating in a research note on Friday, February 2nd. Finally, Boenning Scattergood reaffirmed a “buy” rating on shares of Xylem in a research note on Friday, December 15th. Six investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Xylem presently has an average rating of “Buy” and an average target price of $70.08.

Shares of Xylem (NYSE:XYL) traded up $0.68 on Tuesday, hitting $72.61. 570,924 shares of the stock traded hands, compared to its average volume of 1,104,958. The firm has a market cap of $13,000.00, a PE ratio of 39.70, a P/E/G ratio of 1.35 and a beta of 1.20. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.88 and a quick ratio of 1.41. Xylem has a 12 month low of $46.95 and a 12 month high of $76.81.

Xylem (NYSE:XYL) last announced its quarterly earnings data on Thursday, February 1st. The industrial products company reported $0.76 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.76. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Xylem had a net margin of 7.03% and a return on equity of 17.95%. The business’s revenue was up 16.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.66 EPS. equities research analysts forecast that Xylem will post 2.91 earnings per share for the current fiscal year.

In other Xylem news, insider Tomas Brannemo sold 2,260 shares of the firm’s stock in a transaction dated Tuesday, December 19th. The shares were sold at an average price of $67.75, for a total value of $153,115.00. Following the completion of the transaction, the insider now directly owns 10,975 shares in the company, valued at $743,556.25. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Steven R. Loranger sold 47,712 shares of the firm’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $68.10, for a total transaction of $3,249,187.20. Following the completion of the transaction, the director now owns 68,843 shares of the company’s stock, valued at $4,688,208.30. The disclosure for this sale can be found here. Over the last quarter, insiders sold 75,455 shares of company stock valued at $5,166,873. Corporate insiders own 0.75% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in the business. Sentry Investment Management LLC boosted its holdings in shares of Xylem by 1.2% in the second quarter. Sentry Investment Management LLC now owns 11,839 shares of the industrial products company’s stock worth $656,000 after buying an additional 137 shares during the period. Advisor Group Inc. boosted its holdings in shares of Xylem by 18.3% during the second quarter. Advisor Group Inc. now owns 3,592 shares of the industrial products company’s stock worth $198,000 after purchasing an additional 555 shares during the period. Greenleaf Trust boosted its holdings in shares of Xylem by 97.4% during the fourth quarter. Greenleaf Trust now owns 1,490 shares of the industrial products company’s stock worth $102,000 after purchasing an additional 735 shares during the period. Barings LLC boosted its holdings in shares of Xylem by 16.5% during the fourth quarter. Barings LLC now owns 5,656 shares of the industrial products company’s stock worth $386,000 after purchasing an additional 800 shares during the period. Finally, Global X MANAGEMENT CO LLC boosted its holdings in shares of Xylem by 13.4% during the third quarter. Global X MANAGEMENT CO LLC now owns 6,849 shares of the industrial products company’s stock worth $429,000 after purchasing an additional 808 shares during the period. Institutional investors own 85.07% of the company’s stock.

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About Xylem

Xylem Inc is a water technology company. The Company designs, manufactures and services engineered solutions across a range of critical applications. It is an equipment and service provider for water and wastewater applications with a portfolio of products and services addressing the cycle of water, from collection, distribution and use to the return of water to the environment.

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