GET DAILY SIGNALSBadger Meter (BMI) Rises +22% on Q3 Earnings Strength and Dividend Increase
Key Takeaways
- Badger Meter (BMI) shares climbed roughly 22% over the last 30 days, rising from about $126 to nearly $155.
- The surge was led by a strong third-quarter 2026 earnings report released on October 22, 2026, featuring margin expansion and a dividend increase.
- Q3 diluted EPS of $1.24 beat the consensus estimate of $1.21, while gross margin expanded 120 basis points to 41.9%.
- Management raised the annual dividend rate by 10% to $1.76 per share, marking the 34th consecutive year of dividend growth.
- Argus upgraded BMI to Buy from Hold in late October, citing improving business conditions and a clean balance sheet.
- Over the trailing quarter, the stock also advanced about 18%, although the path was volatile ahead of the earnings-driven breakout.
- For additional detail, explore Badger Meter's Price Targets, Earnings, and Forecast pages.
- Discover how automated strategies are positioning across the market by exploring Trending AI Robots.
Badger Meter (BMI) Business Overview
Badger Meter, Inc. is a Milwaukee, Wisconsin-based manufacturer and provider of flow measurement, control, and communications solutions, primarily serving water utilities and industrial customers. The company's portfolio includes residential and commercial water meters, advanced metering infrastructure (AMI), ultrasonic metering technology, and flow instrumentation products used in a wide range of industrial applications. Its BlueEdge software suite supports data analytics, network monitoring, and utility operations, extending the business beyond hardware into recurring software and software-as-a-service revenue.
Investors follow BMI because of its leadership position in water technology, a durable utility customer base, and a long track record of dividend growth. The company's mix shift toward higher-margin ultrasonic meters and software has supported steady margin expansion, while its capital allocation strategy combines organic investment with share repurchases and consistent dividend increases. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
BMI Stock Performance: Last 30 Days Compared to the Quarter
Over the last 30 days, BMI rose from a closing price of approximately $126.48 to roughly $154.72, a gain of about 22%. The advance was not gradual. The stock held near the mid-$120s through mid-October before gapping sharply higher on October 22, when it jumped from a prior close near $131.86 to $149.64 following the third-quarter earnings release. Shares then continued to climb, reaching the mid-$150s in early November and holding near those levels.
Over the trailing quarter, the move was more mixed before the breakout. From a mid-August close near $130.82, the stock softened through September, touching the low-$120s by the end of that month. The late-October earnings reaction reversed that weakness, leaving BMI up roughly 18% over the three-month period despite the earlier drawdown.
Key Drivers Behind the Recent 30-Day Gain
The dominant catalyst was the third-quarter 2026 earnings report released on October 22. Badger Meter reported diluted EPS of $1.24, ahead of the $1.21 consensus estimate, even though revenue of $235.9 million was essentially flat versus the prior-year period and slightly below consensus. The market's positive reaction centered on profitability rather than top-line growth: gross margin expanded 120 basis points to 41.9%, operating margin rose 60 basis points to 20.2%, and base operating margin reached 20.9%.
Management also reinforced shareholder confidence by raising the annual dividend rate 10% to $1.76 per share, the 34th consecutive annual increase, and by repurchasing $55 million of stock during the quarter. The formal launch of OneNetwork, a real-time network monitoring and analytics platform, added to the positive narrative around software-led growth and differentiation. Further support came from the analyst community. In late October, Argus upgraded BMI to Buy from Hold with a $170 price target, pointing to improving business conditions, a clean balance sheet, and the dividend increase as signals of management confidence.
Performance Trends Over the Past Quarter
The quarterly trend reflects a two-phase story. Through September, shares drifted lower as investors weighed a softer start to 2026, project-pacing dynamics, and pressure from electronic component costs and availability tied to AI and data center demand. Base sales, excluding the UDlive acquisition completed in May 2026, had declined modestly year over year. The October earnings report marked a turning point. Sequentially, base sales rose 5% from the second quarter as previously awarded utility projects ramped, and management guided to sequential and year-over-year base sales growth in the fourth quarter while expressing confidence in sustaining momentum into 2027. Improving margins, strong cash returns to shareholders, and a stabilizing demand environment helped the stock recover and extend above its prior highs.
What to Watch for in BMI's Outlook
Looking ahead, investors are likely to focus on whether the fourth quarter delivers the guided sequential and year-over-year base sales growth, particularly given fewer operating days during the holiday period. The ramp of awarded utility projects, including progress on larger deployments, will be a key demand indicator, as will continued software revenue growth and the adoption of the OneNetwork platform. Margin trends remain important, especially how Badger Meter navigates electronic component cost and availability pressures associated with AI and data center build-out. Additional analyst actions, dividend and buyback activity, and any updates on the 2027 outlook will also shape sentiment. As with any investment, these factors carry uncertainty, and this analysis is not a recommendation to buy or sell any security. I pulled up Tickeron’s AI Trend Prediction Engine for additional context on recent patterns.
Reviewing Automated Strategies on Tickeron
In my research process, I often review Tickeron’s AI Trading Bots to see how algorithmic approaches are positioned across the market. These tools surface data-driven strategies that can complement fundamental analysis and offer perspective on current conditions without replacing individual judgment. It provides a useful layer for investors looking at broader market dynamics.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BMI in upward trend: 10-day moving average broke above 50-day moving average on October 22, 2026
The 10-day moving average for BMI crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 19, 2026. You may want to consider a long position or call options on BMI as a result. In 55 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
BMI moved above its 50-day moving average on October 21, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where BMI advanced for three days, in 184 of 306 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
The Aroon Indicator entered an Uptrend today. In 110 of 211 cases where BMI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The 10-day RSI Indicator for BMI moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 15 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 50%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 63 cases where BMI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 63%.
The Moving Average Convergence Divergence Histogram (MACD) for BMI turned negative on November 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 23 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 49%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BMI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
BMI broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. BMI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 49 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 49 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 71 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BMI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.714) is normal, around the industry mean (1.448). P/E Ratio (36.786) is within average values for comparable stocks, (5.350). Projected Growth (PEG Ratio) (2.931) is also within normal values, averaging (5.470). Dividend Yield (0.011) settles around the average of (0.012) among similar stocks. P/S Ratio (4.255) is also within normal values, averaging (32.028).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a maker of flow measurement and control products
Industry ElectronicEquipmentInstruments
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