Xylem Inc. (NYSE: XYL) stock jumped 1.38% on Thursday to $96.32 against a previous-day closing price of $95.01. With 1.91 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.4 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $96.53 whereas the lowest price it dropped to was $95.28. The 52-week range on XYL shows that it touched its highest point at $118.58 and its lowest point at $84.15 during that stretch. It currently has a 1-year price target of $124.10. With its current market cap of 23.31 billion, XYL has annualized dividend of $1.32 while the current yield stands at 1.37%. Beta for the stock currently stands at 1.10.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of XYL was up-trending over the past week, with a rise of 0.65%, but this was down by -4.65% over a month. Three-month performance dropped to -13.83% while six-month performance fell -0.24%. The stock gained 2.77% in the past year, while it has lost -12.89% so far this year. A look at the trailing 12-month EPS for XYL yields 1.88 with Next year EPS estimates of 3.98. For the next quarter, that number is 0.89. This implies an EPS growth rate of -16.60% for this year and 9.78% for next year. EPS is expected to grow by 18.76% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.20%.
Float and Shares Shorts:
At present, 240.83 million XYL shares are outstanding with a float of 240.02 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.03 million, which was 1.67% higher than short shares on Jul 30, 2023. In addition to Mr. Patrick K. Decker as the firm’s Pres, CEO & Director, Ms. Sandra E. Rowland serves as its Sr. VP & CFO.
Through their ownership of 76.70% of XYL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.84% of XYL, in contrast to 40.11% held by mutual funds. Shares owned by individuals account for 0.78%. As the largest shareholder in XYL with 11.22% of the stake, The Vanguard Group, Inc. holds 26,869,008 shares worth 26,869,008. A second-largest stockholder of XYL, BlackRock Fund Advisors, holds 12,594,464 shares, controlling over 5.26% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in XYL, holding 9,868,835 shares or 4.12% stake. With a 3.12% stake in XYL, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 7,457,506 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.39% of XYL stock, is the second-largest Mutual Fund holder. It holds 5,729,378 shares valued at 645.99 million. Vanguard Mid Cap Index Fund holds 2.31% of the stake in XYL, owning 5,539,245 shares worth 624.55 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, XYL reported revenue of $1.36B and operating income of $153.00M. The EBITDA in the recently reported quarter was $215.00M and diluted EPS was $0.62.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for XYL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With XYL analysts setting a high price target of $135.00 and a low target of $97.00, the average target price over the next 12 months is $121.64. Based on these targets, XYL could surge 40.16% to reach the target high and rise by 0.71% to reach the target low. Reaching the average price target will result in a growth of 26.29% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded XYL stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 99,649 shares were bought while 99,649 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 39 over the past year. The total number of shares bought during that period was 378,443 while 235,751 shares were sold.