Commonwealth Equity Services Raises Badger Meter Holdings 13.5% to $12.59M
Commonwealth Equity Services LLC boosted its Badger Meter stake by 13.5% to 70,488 shares, now worth $12.59 million after buying 8,387 shares in Q3. Salomon & Ludwin initiated a $38,000 position and Cullen Frost Bankers raised its holding by 170.5%, while institutional ownership stands at 89.01%.
1. Institutional Stake Increase Highlights Confidence
Commonwealth Equity Services LLC boosted its position in Badger Meter by 13.5% during the third quarter, acquiring an additional 8,387 shares to reach a total holding of 70,488 shares valued at $12.59 million. This purchase lifted Commonwealth’s ownership to 0.24% of the company’s outstanding stock. Other recent moves included Salomon & Ludwin LLC’s new $38,000 stake and Canada Pension Plan Investment Board’s $49,000 entry, contributing to a total institutional and hedge-fund ownership level of 89.01%.
2. Third-Quarter Results Underscore Margin Expansion
In its latest quarterly report, Badger Meter delivered earnings per share of $1.19, beating consensus by $0.08, on revenue of $235.65 million versus expectations of $231.88 million. Revenue grew 13.1% year-over-year, while net margin expanded to 15.40% and return on equity reached 21.12%. These results compare with EPS of $1.08 in the same period last year, and analysts project full-year EPS of 4.65.
3. Smart-Water Growth Fueled by Technology and Acquisitions
Only 40% of Badger Meter’s installed connection points have migrated to its advanced metering infrastructure (AMI), presenting a large upgrade opportunity. The company’s 2025 acquisition of SmartCover for $185 million adds sewer-monitoring sensors and wastewater inflow analytics to its portfolio, enhancing cross-sell potential. Since 2020, total revenue has more than doubled, with recurring software revenue growing at a 28% average annual rate. Operating margins have climbed from under 15% in 2019 to nearly 20%, and earnings have nearly tripled over the same period.
4. Analyst Consensus Reflects Moderate Buy Sentiment
Among ten recent research notes, one analyst has rated Badger Meter a Strong Buy, four have issued Buy ratings, four Hold ratings and one Sell rating. The consensus view is Moderate Buy with an average price target of $218.25. The company’s market capitalization stands at $5.15 billion, with a price/earnings ratio of 37.15, a P/E/G ratio of 2.60 and a beta of 0.91. Badger Meter also maintains a 33-year streak of dividend increases, with its most recent quarterly payout of $0.40 per share representing an annualized yield of 0.9% and a payout ratio of 34.04%.