GET DAILY SIGNALSBadger Meter (BMI) Shares Climb +12.4% on Q3 Margin Gains and EPS Growth
Key Takeaways
- Badger Meter shares climbed roughly 12.4% over the last 30 days, from a closing price near $126.53 on September 28 to about $142.20 in late-October trading.
- The advance was driven primarily by third-quarter 2026 results reported on October 22, which featured margin expansion and earnings growth even as revenue was roughly flat.
- Gross margin expanded 120 basis points to 41.9%, and operating margin rose 60 basis points to 20.2%, reflecting a favorable shift toward ultrasonic meters and software revenue.
- Diluted earnings per share increased 4% to $1.24, modestly ahead of analyst consensus, while total sales of $235.9 million were in line with the prior-year period.
- Management guided to both sequential and year-over-year base sales growth in the fourth quarter despite fewer operating days, reinforcing near-term momentum.
- Over the last quarter, the stock has gained about 5.7%, recovering from a sharp late-July selloff that followed second-quarter results.
- For additional data, explore Badger Meter's Price Targets, Earnings, and Forecast pages.
- Explore Trending AI Robots to see curated automated trading strategies.
Badger Meter (BMI): Company Overview and Market Position
Badger Meter, Inc. is a Milwaukee, Wisconsin-based provider of flow measurement, water quality, and control solutions for utility and industrial customers worldwide. Marketed under the BlueEdge brand, its portfolio spans mechanical and ultrasonic water meters, flow instrumentation for industrial processes, water quality monitoring equipment, and communication technologies such as the ORION family of radio endpoints. The company also sells a growing base of software-as-a-service offerings, including advanced metering analytics and customer engagement tools, and in 2026 introduced the OneNetwork platform for real-time network monitoring and analysis.
Badger Meter is a leader in the North American municipal water metering market and competes on product innovation, a differentiated software ecosystem, and a 34-year track record of consecutive annual dividend increases. Investors follow the stock for its exposure to long-term utility infrastructure spending, water-scarcity themes, and its expanding recurring software revenue, which carries higher margins than hardware sales. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Recent Stock Performance: Last 30 Days vs. Quarter
Over the last 30 days, Badger Meter shares advanced approximately 12.4%. The stock closed near $126.53 on September 28 and traded around $142.20 in late October, with the bulk of the move occurring after the company's October 22 earnings release. The rally accelerated through the following sessions, pushing the stock sharply higher on above-average volume.
Looking at the last quarter, the trajectory was more uneven. The shares began the period near $134.58 in late July and have since gained roughly 5.7%. That three-month span included a steep late-July decline following second-quarter results, followed by a choppy sideways recovery through September, and then the sharp October rebound on improved third-quarter profitability. From what I see, this pattern highlights how quickly sentiment can shift with earnings clarity.
What Drove BMI Stock Price in the Last 30 Days
The primary catalyst was Badger Meter's third-quarter 2026 earnings report on October 22. Total sales of $235.9 million were essentially flat year over year, and base sales, excluding the UD Live acquisition, declined 2% year over year while rising 5% sequentially. Investors, however, focused on profitability: gross margin expanded 120 basis points to 41.9%, operating margin improved 60 basis points to 20.2%, and diluted EPS rose 4% to $1.24 from $1.19 a year earlier, slightly above consensus expectations.
The margin strength reflected a favorable mix shift toward higher-margin ultrasonic meters and continued software growth, which helped offset electronic component cost pressures tied to AI and data-center demand. Management also guided to sequential and year-over-year base sales growth in the fourth quarter despite roughly 5% fewer operating days, reinforcing the view that awarded utility projects are ramping. Analyst activity added further support, with RBC raising its price target on the shares and maintaining an Outperform rating.
What Drove BMI Stock Performance Over the Last Quarter
The broader quarter was defined by a sharp reset followed by a steady recovery. In late July, the stock fell about 13% in a single session after second-quarter results disappointed, as project timing and softer short-cycle demand weighed on revenue. Through August and September, the shares traded in a relatively narrow range as investors awaited clearer signs that previously awarded utility projects were ramping.
The October earnings release marked the inflection point. Sequential base sales growth of 5%, robust gross margins, and confident fourth-quarter commentary signaled that demand had stabilized and that the company's structural mix improvements were intact. Capital returns also supported sentiment, including a 10% dividend increase announced in August and $55 million in share repurchases during the quarter.
BMI Stock Forecast Drivers: What Investors Should Watch Next
Investors should monitor several factors in the months ahead. The pace at which awarded utility projects ramp and convert to revenue will be central, given management's expectation for sequential and year-over-year base sales growth in the fourth quarter. Gross margin durability will also be in focus, particularly as electronic component cost and availability pressures from AI and data-center build-outs persist.
Additional catalysts include further adoption of the OneNetwork software platform, continued growth in flow instrumentation tied to data-center cooling and water applications, and the integration of the UD Live acquisition. Macroeconomic conditions affecting municipal capital budgets and utility spending, as well as any updates to full-year organic sales expectations, will also influence the stock's direction. These considerations are informational and do not constitute investment advice. I’m watching this closely as the fourth-quarter results approach.
Using Tickeron Tools for Further Analysis
In my view, one resource that helps me identify automated strategies aligned with specific objectives is Tickeron’s Trending AI Robots page. It features a curated selection of top-performing AI-driven trading bots across various approaches and timeframes. Traders can browse these options to find bots that may complement their own market analysis and risk tolerance, providing an additional lens on how different strategies perform on names like BMI.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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 crossed 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 14 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 78%.
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 65 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for BMI just turned positive on October 09, 2026. Looking at past instances where BMI's MACD turned positive, the stock continued to rise in 30 of 47 cases over the following month. The odds of a continued upward trend are 64%.
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%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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.
The Aroon Indicator for BMI entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying 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 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 PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to average 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 Profit vs. Risk Rating rating for this company is 75 (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 81, placing this stock better than average.
The Tickeron Valuation Rating of 79 (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 (6.441) is normal, around the industry mean (1.413). P/E Ratio (35.291) is within average values for comparable stocks, (7.202). Projected Growth (PEG Ratio) (2.931) is also within normal values, averaging (5.470). Dividend Yield (0.012) settles around the average of (0.011) 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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