Reasons Institutions Continue to Invest in Badger Meter Following Significant Decline
Market Correction and Valuation: Badger Meter's stock has experienced a significant 40% reduction in price, leading to a market correction that has realigned valuations, indicating a potential rebound in the future.
Strong Financial Forecasts: The company has reaffirmed its long-term forecasts, expecting sustainable revenue growth and robust cash flow conversion, with projections of a 50% stock price rebound in upcoming quarters.
Institutional Buying Activity: Institutions are accumulating Badger Meter stock, providing a solid support base and enhancing the outlook for price advances, despite mixed quarterly results.
Positive Operational Performance: Despite falling short of consensus estimates, Badger Meter reported a 7.6% revenue growth, improved operating margins, and a strong balance sheet, indicating resilience and potential for future growth.
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- Quarterly Cash Dividend: Badger Meter has declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and payment scheduled for March 13, 2026, which is expected to enhance shareholder returns and boost market confidence.
- Increased Repurchase Authorization: The company is raising its share repurchase authorization by $75 million, combining it with the previously approved $75 million from November 2025, resulting in a total repurchase authorization of $150 million, reflecting the company's confidence in its stock value.
- Repurchase Progress: Under the expanded authorization, Badger Meter has repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, leaving $119.7 million available for future repurchases, indicating proactive capital management to enhance shareholder value.
- Future Outlook: Badger Meter anticipates achieving single-digit sales growth over the next five years, particularly as the PRASA project ramps up, demonstrating the company's growth potential and the effectiveness of its strategic planning.
- Quarterly Dividend Announcement: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share for shareholders of record on February 27, 2026, payable on March 13, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million, effective through November 30, 2028, enhancing the company's capital management flexibility.
- Repurchase Execution Status: Under the expanded repurchase authorization, the company repurchased 205,000 shares for approximately $30.3 million in Q1 2026, with $119.7 million remaining available, indicating proactive capital structure management in response to market conditions.
- Forward-Looking Statement Risks: The company highlighted that forward-looking statements involve various risks and uncertainties, including market acceptance, supply chain risks, and legal compliance, underscoring challenges in technology development and market competition.
- Buyback Plan Expansion: Badger Meter's board has approved a $75 million increase to its stock buyback program, aimed at enhancing shareholder value and boosting market confidence, which is expected to have a positive impact on the company's stock price.
- Funding Source Analysis: The buyback will be supported by the company's existing cash flow and future earnings, indicating Badger Meter's confidence in its financial health while reflecting an optimistic outlook on future market performance.
- Market Reaction Expectations: Analysts generally believe that the increased buyback plan will help boost earnings per share, potentially attracting more investor attention and driving the stock price up in the short term.
- Strategic Significance: This move not only demonstrates the company's commitment to shareholder returns but may also strengthen Badger Meter's market position in a competitive environment, further solidifying its leadership in the industry.

- Quarterly Dividend Declaration: Badger Meter's Board of Directors declared a cash dividend of $0.40 per share, with a record date of February 27, 2026, and a payment date of March 13, 2026, reflecting the company's commitment to shareholder returns.
- Increased Repurchase Authorization: The Board approved an increase of $75 million to the company's share repurchase authorization, bringing the total to $150 million through November 30, 2028, indicating a proactive approach to capital management.
- Repurchase Execution: Under the expanded authorization, the company repurchased 205,000 shares for approximately $30.3 million in the first quarter of 2026, with $119.7 million remaining available, demonstrating the company's ability to capitalize on market opportunities.
- Flexibility of Repurchase Program: The repurchase program allows the company to adjust the timing, frequency, and amount of share repurchases based on market conditions and capital allocation priorities, showcasing its adaptability in a dynamic market environment.
- Share Repurchase Authorization: Badger Meter has increased its share repurchase authorization by $75 million.
- Impact on Shareholders: This move is expected to benefit shareholders by potentially increasing the value of remaining shares.
- Cluster-Buy Signal: Three insiders at Badger Meter Inc purchased a total of 8,320 shares at an average price of $150.90, amounting to $1.26 million, indicating strong confidence in the company's future performance.
- Stock Performance Analysis: BMI shares are currently trading at $155.63, up from a 52-week low of $139.14, with a high of $256.08, suggesting a potential reassessment of its market value.
- Stable Dividend Yield: Badger Meter Inc offers an annualized dividend of $1.6 per share, paid quarterly, with the most recent ex-dividend date on November 21, 2025, demonstrating a commitment to shareholder returns.
- Positive Market Reaction: Following the insider purchases, BMI shares rose approximately 2.4% on the day, reflecting a positive market response to the cluster-buy activity, which may indicate further price appreciation ahead.







