Badger Meter (NYSE:BMI) Stock Falls 6% on Analyst Downgrade

Key Points

• Badger Meter shares fell 6% after Northcoast Research downgraded the stock from Buy to Neutral; trading volume was also about 91% below the average session level.
• Analyst sentiment is mixed, with six Buy, five Hold, and one Sell rating, producing a consensus rating of Hold and an average price target of $166.33.
• The company slightly exceeded quarterly EPS expectations at $1.24 but reported revenue below forecasts, while increasing its quarterly dividend to $0.44 per share.

Badger Meter, Inc. (NYSE:BMI - Get Free Report)'s stock price dropped 6% on Tuesday after Northcoast Research downgraded the stock from a buy rating to a neutral rating. The company traded as low as $151.05 and last traded at $146.5220. 45,084 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 478,413 shares. The stock had previously closed at $155.95.

Other research analysts have also issued reports about the company. Stifel Nicolaus set a $168.00 price target on Badger Meter in a report on Friday. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $187.00 target price (up from $162.00) on shares of Badger Meter in a research report on Friday. JPMorgan Chase & Co. dropped their target price on shares of Badger Meter from $172.00 to $170.00 and set an "overweight" rating on the stock in a research report on Thursday, July 23rd. Wall Street Zen cut shares of Badger Meter from a "hold" rating to a "sell" rating in a research note on Saturday, October 17th. Finally, Zacks Research raised shares of Badger Meter from a "strong sell" rating to a "hold" rating in a report on Monday, July 6th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $166.33.

Insider Buying and Selling

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

Institutional Trading of Badger Meter

A number of institutional investors and hedge funds have recently modified their holdings of BMI. Public Employees Retirement System of Ohio acquired a new stake in Badger Meter during the second quarter worth $27,000. Dunhill Financial LLC bought a new stake in Badger Meter in the 2nd quarter valued at $28,000. Integrated Wealth Concepts LLC acquired a new position in shares of Badger Meter in the 2nd quarter valued at $29,000. Frazier Financial Advisors LLC acquired a new position in shares of Badger Meter in the 2nd quarter valued at $30,000. Finally, State of Wyoming bought a new position in shares of Badger Meter during the 2nd quarter worth about $43,000. 89.01% of the stock is currently owned by institutional investors.

Badger Meter Trading Down 6.7%

The business's fifty day moving average price is $131.11 and its 200 day moving average price is $139.57. The company has a market capitalization of $4.22 billion, a P/E ratio of 33.66, a P/E/G ratio of 3.72 and a beta of 0.64.

Badger Meter (NYSE:BMI - Get Free Report) last posted its earnings results on Thursday, October 22nd. The scientific and technical instruments company reported $1.24 earnings per share for the quarter, beating analysts' consensus estimates of $1.23 by $0.01. The business had revenue of $230.30 million for the quarter, compared to analysts' expectations of $240.35 million. Badger Meter had a net margin of 14.36% and a return on equity of 18.49%. The firm's revenue for the quarter was up .1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.19 earnings per share. Equities research analysts anticipate that Badger Meter, Inc. will post 4.52 EPS for the current year.

Badger Meter Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, August 28th were issued a dividend of $0.44 per share. The ex-dividend date of this dividend was Friday, August 28th. This is a positive change from Badger Meter's previous quarterly dividend of $0.40. This represents a $1.76 dividend on an annualized basis and a yield of 1.2%. Badger Meter's dividend payout ratio (DPR) is presently 40.65%.

About Badger Meter

Badger Meter, Inc is a water technology company that develops and manufactures flow measurement, control and communications solutions. Its products are used to measure and manage water across municipal, commercial and industrial applications, helping customers improve operational efficiency, monitor usage and support water conservation.

The company's offerings include mechanical, ultrasonic and electromagnetic flow meters; valves and related flow-control equipment; and smart water technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.