Badger Meter (NYSE: BMI) stock price went parabolic and reached an all-time high after the company published strong financial results last week. It soared to $186, which is remarkable for a company that was trading for less than $1 two decades ago. It has jumped by over 624% in the past decade and by 230% in the past five.
Strong earnings and Mullin investmentBadger Meter is a company that manufacturers products for utilities, commercial, and industrial sectors. Its core products are meters and meter components that are used by most water utilities in the US and around the world.
It competes with companies like Roper Technologies and Xylem. The three firms control about 85% of water meters in North Anerica.
The company came into the spotlight earlier this year when Senator Markwayne Mullin who sits on the Public Works Committee invested in it. This was a suspicious trade since no other politician has reported owning the company.
Have not seen much media coverage of this.
I recently posted a report on a suspicious trade I noticed from Senator Markwayne Mullin.
He bought stock in a company called Badger Meter.
The stock has risen over 26% since then, and just crushed earnings.
Badger Meter produces… pic.twitter.com/G4nXwLmkvG
In the past, stock purchases by politicians have been well-timed. Just last week, I wrote about a small company known as Humacyte that surged after Senator Tommy Tuberville bought a stake in it.
Badger Meter’s stock continued its strong rally after publishing strong financial results. Sales in the quarter jumped by 23% to over $193 million while its operating profit soared by 46%. The company’s net earnings jumped to more than $29 million.
Badger Meter believes that the company has more room to grow this year as demand for its meter solutions rise. The same is true with analysts, who have a median revenue estimate of $202 million for the second quarter followed by $208 million in Q3.
Most analysts tracking the company have a neutral estimate. Stiffel and Baird have a hold rating while Northcoast Research upgraded it from sell to neutral. The average target for the stock is $173.20, which is lower than the current $186. This could be because the company is not followed by most Wall Street analysts.
Badger Meter’s performance is also in line with that of other industrial names like Illinois Tool Works, Emerson Electric, and General Electric.
Badger Meter stock price forecast
Turning to the weekly chart, we see that the BMI share price has been in a strong bullish trend in the past few months. It soared to a record high of almost $190 after its spectacular financial results.
As it jumped, the stock jumped above the key resistance point at $170, its highest point in August last year. It has also remained higher than all moving averages.
Therefore, the short-term outlook for the stock is bullish, with the next level to watch being the psychological point at $200. The alternative scenario is where the stock retests the support at $170 and then resumes the bullish trend.
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