XXEC Inc. Invests $2.68 Million in Badger Meter, Inc. $BMI

Key Points

• XXEC Inc. disclosed a new stake in Badger Meter, buying 97,646 shares worth about $2.68 million in the first quarter. The position makes BMI about 0.5% of its portfolio and its 22nd-largest holding.
• Institutional ownership in Badger Meter remains very high, with 89.01% of shares held by hedge funds and other investors. Several major firms, including Vanguard, State Street, Invesco, Geode, and Pictet, also added to their positions.
• The stock has been under pressure from class action lawsuit headlines and allegations that the company may have misled investors about demand and order trends. At the same time, Badger Meter recently paid a $0.40 quarterly dividend and insiders have been buying shares.

XXEC Inc. bought a new stake in Badger Meter, Inc. (NYSE:BMI - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 97,646 shares of the scientific and technical instruments company's stock, valued at approximately $2,683,000. Badger Meter accounts for approximately 0.5% of XXEC Inc.'s portfolio, making the stock its 22nd biggest holding. XXEC Inc. owned 0.33% of Badger Meter as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently made changes to their positions in BMI. Vanguard Group Inc. increased its holdings in Badger Meter by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 3,979,893 shares of the scientific and technical instruments company's stock valued at $694,133,000 after buying an additional 19,585 shares in the last quarter. State Street Corp boosted its stake in shares of Badger Meter by 1.4% during the 2nd quarter. State Street Corp now owns 1,462,807 shares of the scientific and technical instruments company's stock worth $358,315,000 after acquiring an additional 20,122 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Badger Meter by 20.9% in the 3rd quarter. Invesco Ltd. now owns 970,219 shares of the scientific and technical instruments company's stock worth $173,262,000 after acquiring an additional 168,053 shares during the period. Geode Capital Management LLC grew its holdings in shares of Badger Meter by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 876,854 shares of the scientific and technical instruments company's stock worth $152,951,000 after acquiring an additional 4,035 shares during the period. Finally, Pictet Asset Management Holding SA increased its stake in Badger Meter by 39.2% in the 4th quarter. Pictet Asset Management Holding SA now owns 754,402 shares of the scientific and technical instruments company's stock valued at $131,592,000 after purchasing an additional 212,448 shares in the last quarter. 89.01% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Badger Meter

Here are the key news stories impacting Badger Meter this week:

• Negative Sentiment: Multiple law firms issued reminders and investor alerts about the ongoing class action, increasing legal overhang and uncertainty for BMI shareholders. Article Title
• Negative Sentiment: The core allegations in the lawsuit may weigh on sentiment, including claims that Badger Meter misled investors about demand strength and near-term order trends. Article Title
• Negative Sentiment: One law firm specifically pointed to allegations that prior guidance of “high single-digit” growth was followed by a 9% revenue decline, which could reinforce concerns about execution and reporting credibility. Article Title

Badger Meter Trading Up 7.2%

NYSE:BMI opened at $148.66 on Wednesday. The firm has a market cap of $4.34 billion, a price-to-earnings ratio of 33.56, a price-to-earnings-growth ratio of 2.49 and a beta of 0.68. The company's 50-day moving average is $126.04 and its two-hundred day moving average is $148.55. Badger Meter, Inc. has a 12-month low of $112.09 and a 12-month high of $249.56.

Badger Meter (NYSE:BMI - Get Free Report) last released its quarterly earnings results on Tuesday, February 17th. The scientific and technical instruments company reported $1.14 earnings per share (EPS) for the quarter. The company had revenue of $220.71 million for the quarter. Badger Meter had a net margin of 14.56% and a return on equity of 18.76%. On average, equities research analysts forecast that Badger Meter, Inc. will post 4.51 earnings per share for the current fiscal year.

Badger Meter Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Investors of record on Friday, May 22nd were given a dividend of $0.40 per share. The ex-dividend date was Friday, May 22nd. This represents a $1.60 dividend on an annualized basis and a yield of 1.1%. Badger Meter's dividend payout ratio (DPR) is 36.12%.

Insider Transactions at Badger Meter

In other Badger Meter news, CEO Kenneth Bockhorst purchased 2,200 shares of Badger Meter stock in a transaction on Tuesday, April 21st. The shares were bought at an average price of $117.53 per share, with a total value of $258,566.00. Following the purchase, the chief executive officer directly owned 51,676 shares in the company, valued at $6,073,480.28. This trade represents a 4.45% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Richard Htwe acquired 1,700 shares of the firm's stock in a transaction dated Tuesday, April 21st. The shares were acquired at an average price of $116.13 per share, for a total transaction of $197,421.00. Following the acquisition, the vice president directly owned 7,603 shares of the company's stock, valued at approximately $882,936.39. The trade was a 28.80% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders bought 6,628 shares of company stock worth $777,128 in the last three months. 1.00% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Robert W. Baird reduced their price objective on Badger Meter from $173.00 to $145.00 and set an "outperform" rating for the company in a report on Monday, April 20th. Maxim Group lowered Badger Meter from a "buy" rating to a "hold" rating in a report on Thursday, April 23rd. Weiss Ratings cut Badger Meter from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 4th. Zacks Research downgraded Badger Meter from a "hold" rating to a "strong sell" rating in a research note on Friday, June 5th. Finally, Stifel Nicolaus set a $140.00 price objective on shares of Badger Meter in a research report on Friday, May 22nd. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $155.86.

Badger Meter Profile

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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