Xylem (XYL) Stock Corrected on Acquisition Announcement

Conestoga Capital Advisors, an asset management company, released its “Mid Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Cap Composite rose 10.23% net of fees in the first quarter, compared to the Russell Midcap Growth Index’s 9.14% return. The strategy primarily benefitted from the stock selection while the sector allocation also contributed to the relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Mid Cap Strategy highlighted stocks like Xylem Inc. (NYSE:XYL) in the first quarter 2023 investor letter. Headquartered in Washington, District of Columbia, Xylem Inc. (NYSE:XYL) provides water and wastewater applications solutions. On May 26, 2023, Xylem Inc. (NYSE:XYL) stock closed at $98.35 per share. One-month return of Xylem Inc. (NYSE:XYL) was -5.29%, and its shares gained 14.48% of their value over the last 52 weeks. Xylem Inc. (NYSE:XYL) has a market capitalization of $23.545 billion.

Conestoga Mid Cap Strategy made the following comment about Xylem Inc. (NYSE:XYL) in its Q1 2023 investor letter:

“Xylem Inc. (NYSE:XYL): XYL is a leading global water technology company. The company designs, manufactures, and services highly engineered solutions sold into the Water Utility sector, Industrial market, and Commercial market. Although XYL reported a very strong Q4 with organic growth up 20%, they also announced a very large acquisition of Evoqua Water Technologies (AQUA), which Conestoga owns in the small cap strategy. The street is concerned that XYL is paying too much for AQUA and, therefore, the stock corrected.”

Photo by RephiLe water on Unsplash

Xylem Inc. (NYSE:XYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Xylem Inc. (NYSE:XYL) at the end of the first quarter 2023 which was 21 in the previous quarter.

We discussed Xylem Inc. (NYSE:XYL) in another article and shared the list of best climate change stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.