Badger Meter (NYSE:BMI) Stock Price Up 10% on Better-Than-Expected Earnings

Key Points

• Badger Meter shares rose 10% to about $145 after the company reported quarterly earnings of $1.24 per share, beating analysts’ $1.23 estimate. Revenue increased 0.1% year over year, while net margin was 14.27%.
• The company increased its quarterly dividend from $0.40 to $0.44 per share, equivalent to a $1.76 annualized dividend and a 1.2% yield.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $159.38; institutional investors own approximately 89% of the stock.

Shares of Badger Meter, Inc. (NYSE:BMI - Get Free Report) traded up 10% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $147.80 and last traded at $145.0790. Approximately 105,957 shares changed hands during trading, a decline of 78% from the average daily volume of 472,698 shares. The stock had previously closed at $131.86.

The scientific and technical instruments company reported $1.24 earnings per share for the quarter, topping analysts' consensus estimates of $1.23 by $0.01. Badger Meter had a return on equity of 18.03% and a net margin of 14.27%. Badger Meter's revenue for the quarter was up .1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.19 earnings per share.

Badger Meter Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Friday, August 28th were issued a $0.44 dividend. This is an increase 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%. The ex-dividend date was Friday, August 28th. Badger Meter's dividend payout ratio is currently 41.12%.

Analyst Ratings Changes

BMI has been the topic of several recent research reports. Royal Bank Of Canada cut their price objective on shares of Badger Meter from $169.00 to $162.00 and set an "outperform" rating on the stock in a research report on Thursday, July 23rd. JPMorgan Chase & Co. decreased their target price on shares of Badger Meter from $172.00 to $170.00 and set an "overweight" rating for the company in a research report on Thursday, July 23rd. Stifel Nicolaus dropped their price target on shares of Badger Meter from $165.00 to $150.00 and set a "buy" rating on the stock in a research note on Monday. Northcoast Research upgraded shares of Badger Meter from a "neutral" rating to a "buy" rating and set a $148.00 price target on the stock in a research note on Friday, September 18th. Finally, Robert W. Baird set a $167.00 price target on shares of Badger Meter and gave the company an "outperform" rating in a report on Thursday, July 23rd. Six equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $159.38.

Insider Activity

In related news, VP Edward Callahan purchased 751 shares of the firm's stock in a transaction dated 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 purchase, the vice president owned 1,937 shares in the company, valued at $261,979.25. The trade was a 63.32% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. XXEC Inc. bought a new stake in Badger Meter during the second quarter worth approximately $825,029,000. BlackRock Inc. acquired a new position in Badger Meter during the second quarter valued at approximately $725,926,000. Bank of America Corp DE bought a new position in shares of Badger Meter in the second quarter valued at approximately $68,344,000. American Capital Management Inc. bought a new position in shares of Badger Meter in the second quarter valued at approximately $38,318,000. Finally, Legal & General Group Plc bought a new position in shares of Badger Meter in the second quarter valued at approximately $31,346,000. 89.01% of the stock is owned by institutional investors.

Badger Meter Price Performance

The stock's 50 day moving average price is $129.85 and its two-hundred day moving average price is $132.38. The firm has a market capitalization of $4.20 billion, a price-to-earnings ratio of 34.08, a PEG ratio of 3.18 and a beta of 0.64.

Badger Meter Company Profile

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.

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