BMI Should I Buy
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Badger Meter Inc (BMI) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is showing bearish technical indicators, insider selling, and mixed analyst sentiment. While the company's financials show growth, the near-term outlook and trading trends suggest caution. Holding the stock or waiting for a better entry point is recommended.
The technical indicators are bearish. The MACD histogram is negative and expanding downward, RSI is neutral at 22.372, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with the next support at 141.577.
The company has shown strong financial growth in Q4 2025, with revenue up 7.57% YoY, net income up 9.30% YoY, and EPS up 9.62% YoY. Additionally, the company secured a major AMI deployment contract in Puerto Rico, which could support long-term growth.
Insiders are selling heavily, with a 2384.97% increase in selling activity over the last month. Analysts have downgraded the stock and lowered price targets due to slower near-term growth and margin headwinds. The stock's premium valuation and bearish technical indicators further add to the negative sentiment.
In Q4 2025, Badger Meter reported strong financial growth: revenue increased by 7.57% YoY to $220.7M, net income rose by 9.30% YoY to $33.58M, EPS increased by 9.62% YoY to $1.14, and gross margin improved by 4.46% to 42.13%.
Analyst sentiment is mixed to negative. Recent downgrades include Argus lowering the rating to Hold, and Barclays maintaining an Underweight rating with a price target of $136. While some analysts believe in a rebound in the second half of 2026, others remain cautious about near-term growth and margin challenges.
