Xylem Inc. (XYL): Here Are Some Research Recommendations

Xylem Inc. (NYSE:XYL) finished Friday with an addition of $0.69 to close at $128.76, an upside of 0.54 percent. An average of 536,960 shares of common stock have been traded in the last five days. There was a gain of $4.07 in the past week, and it reached a new high 52 times over the past 12 months. The last 20 days have seen an average of 776,545 shares traded, while the 50-day average volume stands at 733,290.

XYL stock has decreased by -4.74% in the last month. The company shares reached their 1-month lowest point of $118.04 on 10/04/21. With the stock rallying to its 52-week high on 09/02/21, shares of the company touched a low of $84.14 and a high of $138.78 in 52 weeks. It has reached a new high 39 times so far this year and achieved 26.50% or $26.97 in price. In spite of this, the price is down -7.22% from the 52-week high.


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Insider Transactions

4 days have passed since Xylem Inc. (XYL) last reported insider trading activity. Sabol Colin R, who is Senior Vice President, most recently acquired $5,595 shares at $125.84 per share on Oct 19. In this transaction, the insider spent $704,051. Senior Vice President, Pine Matthew Francis, disposed of 2,000 shares at a price of $121.42 on Oct 01. The insider now owns more than $242,835 worth of shares. Prior to that, Director TAMBAKERAS MARKOS I went on to Sale 5,000 shares at $131.96 each on Sep 13. An amount of $659,799 was transacted.

Valuation Metrics

Xylem Inc. (XYL) has a trailing price-to-earnings (P/E) ratio of 60.65, which compares with the 20.30 for the broader industry and 29.83 for the sector. In the last five years, Xylem Inc.’s PE ratio has ranged between 81.94 and 21.20. The stock’s beta is 1.04. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.41, the price-to-book (PB) ratio at 7.63, and the price-to-cash flow ratio at 47.03.

Xylem Inc. pays a $1.12 dividend per share annually. It offers a dividend yield of 0.87%. The company has a payout ratio of 50.50%. The company’s most recent quarterly dividend payment took place on Sep. 23, and it was $0.28 a share, without any change from last year. Its dividend has been increased for the last 9 consecutive years with the latest increase dividend $0.02 reported on Friday February 5 2021.Dividends have grown by 44.44% each year over the last three years.

The quick ratio of Xylem Inc. for the three months ended June 29 was 1.50, and the current ratio was 1.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.81 and a total debt to equity ratio of 1.01 for the quarter ending June 29. Xylem Inc.’s EBITDA margin for the year ending June 29 is 15.35%, while its operating margin for the same period stands at 10.50%. Its gross profit as reported stood at $367.0 million compared to revenue of $4.88 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Xylem Inc.’s return on assets was 4.50%. For the broader industry, ROE averaged 7.02 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Xylem Inc. had $2.47 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $113.0 million in the quarter, while revenues were grew 72.57%. The analyst consensus anticipated Xylem Inc.’s latest quarter earnings to come in at $0.62 per share, but it turned out to be $0.66, a 6.50% surprise. For the quarter, EBITDA amounted to $222.0 million. Shareholders own equity worth $180.16 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Xylem Inc. (XYL) price momentum. RSI 9-day as of the close on 22 October was 65.80%, suggesting the stock is Neutral, with historical volatility in this time frame at 18.98%.

As of today, XYL’s price is $126.80 +3.26% or $4.07 from its 5-day moving average. XYL is currently trading -5.06% lower than its 20-day SMA and +8.41% higher than its 100-day SMA. However, the stock’s current price level is -1.78% below the SMA50 and +18.69% above the SMA200.

The stochastic %K and %D were 94.78% and 85.89%, respectively, and the average true range (ATR) was 2.32. With the 14-day stochastic at 91.08% and the average true range at 2.42, the RSI (14) stands at 57.13%. The stock has reached 3.27 on the 9-day MACD Oscillator while the 14-day reading was at 4.36.

Analyst Ratings

Rosenblatt downgraded Xylem Inc. (NYSE: XYL) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Xylem Inc. (XYL) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell XYL, while 11 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 4 others rate it as a “buy”.

What is XYL’s price target for the next 12 months?

Analysts predict a range of price targets between $80.00 and $136.00, with a median target of $123.50. Taking a look at these predictions, the average price target given by analysts for Xylem Inc. (XYL) stock is $119.00.

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