According to Zacks, “Xylem believes that solid sales in utilities, industrial and commercial end-markets will benefit its top-line performance in the quarters ahead. This along with pricing and productivity initiatives will continue to boost profitability. For 2019, the company anticipates adjusted earnings of $3.20-$3.40 per share, up 11-18% year over year at the mid-point. Revenues are projected to increase 2-4% year over year to $5.3-$5.4 billion, with organic sales increasing 4-6% on the back of strengthening end-markets. However, material price inflation on account of tariffs might dent bottom-line performance. Also, foreign exchange headwind also remains a cause of concern, with 5 cents per share of headwinds expected in 2018. Year to date, the company's shares have underperformed the industry and also look relatively overvalued.”
A number of other research analysts have also issued reports on XYL. Stifel Nicolaus upgraded shares of Xylem from a hold rating to a buy rating and increased their target price for the stock from $72.00 to $75.00 in a research report on Wednesday, December 19th. Oppenheimer set a $80.00 target price on shares of Xylem and gave the stock a buy rating in a research report on Monday, February 4th. ValuEngine lowered shares of Xylem from a buy rating to a hold rating in a research report on Monday, February 4th. BMO Capital Markets restated a buy rating and set a $85.00 target price on shares of Xylem in a research report on Monday, February 25th. Finally, Boenning Scattergood restated a buy rating on shares of Xylem in a research report on Friday, March 22nd. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and nine have assigned a buy rating to the company. The company presently has a consensus rating of Buy and an average price target of $78.36.
Xylem (NYSE:XYL) last announced its quarterly earnings results on Thursday, January 31st. The industrial products company reported $0.88 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.88. Xylem had a net margin of 10.54% and a return on equity of 19.89%. The business had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.36 billion. Equities analysts expect that Xylem will post 3.32 earnings per share for the current year.
In other news, SVP Tomas Brannemo sold 2,621 shares of the company’s stock in a transaction that occurred on Tuesday, February 26th. The shares were sold at an average price of $75.05, for a total transaction of $196,706.05. Following the completion of the sale, the senior vice president now owns 12,774 shares of the company’s stock, valued at approximately $958,688.70. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Kenneth Napolitano sold 35,526 shares of the company’s stock in a transaction that occurred on Monday, February 4th. The stock was sold at an average price of $70.17, for a total transaction of $2,492,859.42. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 80,195 shares of company stock worth $6,000,933. Company insiders own 0.81% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Halsey Associates Inc. CT bought a new stake in shares of Xylem during the 4th quarter worth approximately $626,000. Pathlight Investors LLC bought a new stake in shares of Xylem during the 4th quarter worth approximately $325,000. Rehmann Capital Advisory Group lifted its holdings in shares of Xylem by 7,887.0% during the 3rd quarter. Rehmann Capital Advisory Group now owns 15,974 shares of the industrial products company’s stock worth $200,000 after acquiring an additional 15,774 shares during the period. Hotaling Investment Management LLC bought a new stake in shares of Xylem during the 4th quarter worth approximately $1,111,000. Finally, Mackay Shields LLC lifted its holdings in shares of Xylem by 9.8% during the 4th quarter. Mackay Shields LLC now owns 31,442 shares of the industrial products company’s stock worth $2,097,000 after acquiring an additional 2,794 shares during the period. 87.11% of the stock is owned by institutional investors.
Xylem Company Profile
Xylem Inc engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications. It operates in three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions. The Water Infrastructure segment offers various products, including water and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, and Leopold names for the transportation and treatment of water.
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