BMI Should I Buy
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Badger Meter Inc. (BMI) does not present a strong buy opportunity for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. While the company has shown some positive financial growth and has a robust dividend and buyback program, the recent insider selling, downward EPS revisions, and lack of strong trading signals suggest caution. Additionally, the stock's technical indicators and options data do not indicate a compelling entry point at this time.
The MACD is positive but contracting, indicating weakening momentum. RSI is neutral at 39.621, and moving averages are converging, suggesting no clear trend. The stock is trading near its support level (S1: 151.76), with resistance at 156.328. Overall, the technical indicators do not provide a strong buy signal.
Dividend declared at $0.40 per share and a $75 million share buyback program.
Strong historical performance in exceeding EPS and revenue estimates.
Analysts from Stifel and Baird maintain Buy or Outperform ratings, citing potential for growth in the second half of 2026.
Insider selling has increased significantly by 2477.81% over the last month.
Seven downward EPS revisions in the last three months.
Analysts have lowered price targets, citing slower near-term growth and margin headwinds.
No significant hedge fund activity and neutral sentiment from hedge funds.
Options data shows higher put volume relative to calls, indicating bearish sentiment.
In Q4 2025, revenue increased by 7.57% YoY, net income grew by 9.30% YoY, and EPS rose by 9.62% YoY. Gross margin improved to 42.13%, up 4.46% YoY. These metrics indicate solid financial performance, though growth has been slower than expected.
Analyst sentiment is mixed. Recent upgrades from Stifel and Baird highlight potential for growth in the second half of 2026, but several firms, including Barclays and Deutsche Bank, have downgraded price targets due to slower near-term growth and margin headwinds. The consensus is cautious optimism, with a focus on the latter half of 2026 for potential improvement.
