Badger Meter (NYSE:BMI) Shares Gap Down - Should You Sell?

Key Points

• Badger Meter shares opened lower, falling from a prior close of $130.94 to $128.18 before last trading at $129.09. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but centers on a “Hold” consensus, with five Buy, five Hold, and one Sell rating and an average price target of $164.00.
• The company narrowly exceeded quarterly EPS expectations at $1.02, but revenue declined 6.6% year over year. Badger Meter also raised its quarterly dividend to $0.44, implying a 1.3% yield.

Badger Meter, Inc. (NYSE:BMI - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $130.94, but opened at $128.18. Badger Meter shares last traded at $129.09, with a volume of 12,660 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Wall Street Zen lowered Badger Meter from a "hold" rating to a "sell" rating in a research note on Saturday, June 13th. Royal Bank Of Canada cut their price target on shares of Badger Meter from $169.00 to $162.00 and set an "outperform" rating on the stock in a report on Thursday, July 23rd. Stifel Nicolaus set a $170.00 price target on shares of Badger Meter and gave the stock a "buy" rating in a research note on Monday, July 20th. Weiss Ratings raised shares of Badger Meter from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Finally, Maxim Group lowered shares of Badger Meter from a "buy" rating to a "hold" rating in a report on Thursday, April 23rd. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Badger Meter currently has a consensus rating of "Hold" and a consensus target price of $164.00.

Badger Meter Stock Performance

The firm has a fifty day simple moving average of $137.47 and a 200 day simple moving average of $139.20. The company has a market capitalization of $3.83 billion, a PE ratio of 30.85, a P/E/G ratio of 2.39 and a beta of 0.65.

Badger Meter (NYSE:BMI - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The scientific and technical instruments company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.01. Badger Meter had a return on equity of 18.03% and a net margin of 14.27%.The business had revenue of $220.30 million during the quarter, compared to analysts' expectations of $220.59 million. During the same period in the prior year, the business earned $1.17 EPS. The business's revenue for the quarter was down 6.6% compared to the same quarter last year. Research analysts expect that Badger Meter, Inc. will post 4.43 EPS for the current fiscal year.

Badger Meter Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 28th will be issued a $0.44 dividend. The ex-dividend date is Friday, August 28th. This is an increase from Badger Meter's previous quarterly dividend of $0.40. This represents a $1.76 annualized dividend and a dividend yield of 1.3%. Badger Meter's dividend payout ratio is presently 37.38%.

Insiders Place Their Bets

In other Badger Meter news, VP Edward F. Callahan bought 751 shares of the company's stock in a transaction on Thursday, July 30th. The shares were bought at an average cost of $135.25 per share, for a total transaction of $101,572.75. Following the acquisition, the vice president directly owned 1,937 shares in the company, valued at approximately $261,979.25. The trade was a 63.32% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Badger Meter

Hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd increased its holdings in Badger Meter by 76.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 150 shares of the scientific and technical instruments company's stock valued at $26,000 after buying an additional 65 shares in the last quarter. Brown Brothers Harriman & Co. boosted its stake in shares of Badger Meter by 62.3% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 185 shares of the scientific and technical instruments company's stock worth $33,000 after acquiring an additional 71 shares in the last quarter. Cardinal Capital Management grew its holdings in shares of Badger Meter by 0.4% in the 4th quarter. Cardinal Capital Management now owns 20,165 shares of the scientific and technical instruments company's stock worth $3,517,000 after acquiring an additional 75 shares during the period. Maryland State Retirement & Pension System grew its holdings in shares of Badger Meter by 1.9% in the 4th quarter. Maryland State Retirement & Pension System now owns 4,316 shares of the scientific and technical instruments company's stock worth $753,000 after acquiring an additional 79 shares during the period. Finally, Smartleaf Asset Management LLC grew its holdings in shares of Badger Meter by 13.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 688 shares of the scientific and technical instruments company's stock worth $123,000 after acquiring an additional 82 shares during the period. Hedge funds and other institutional investors own 89.01% of the company's stock.

About Badger Meter

Badger Meter, founded in 1905 and headquartered in Milwaukee, Wisconsin, is a global leader in flow measurement and control solutions. The company's core business centers on the design, manufacture and sale of water meters, control valves and related accessories for municipal and industrial water utilities. Over its more than a century of operation, Badger Meter has built a reputation for precision engineering, durability and compliance with international regulatory standards.

The company's product portfolio includes mechanical and ultrasonic water meters, electromagnetic flow meters for industrial applications, and a range of control valves that help utilities manage pressure and flow in distribution networks.

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