In a notable display of conviction, Badger Meter’s top executives have made significant personal investments in the company’s stock. This move comes even as some market analysts adjusted their ratings following the firm’s latest earnings report. The leadership’s actions are complemented by a substantial increase in the company’s share repurchase authorization and the confirmation of an upcoming dividend payment.
Board Authorizes Enhanced Capital Return
The company’s board of directors has taken decisive steps to return more capital to shareholders. The existing share repurchase program has been doubled, with an additional $75 million authorized. This brings the total available for buying back shares to $150 million.
Concurrently, the quarterly cash dividend of $0.40 per share has been declared. Based on the recent share price, this payout represents a yield of approximately 1.0%. To be eligible for this distribution, investors must hold the stock prior to the ex-dividend date of February 27, 2026. The payment is scheduled for March 13.
Insider Transactions Signal Belief in Value
Recent regulatory filings reveal substantial open-market purchases by two key executives. On February 10, Chief Executive Officer Kenneth Bockhorst acquired 3,300 shares at an average price of $152.42, a transaction valued at over $502,000. The previous day, Executive Vice President Robert Wrocklage purchased 1,650 shares for about $152.35 each.
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These combined acquisitions, totaling more than $750,000, occurred shortly after the release of fourth-quarter financial results. Market participants often interpret such insider buying as a positive signal, suggesting that management views the current valuation as attractive or remains confident in the company’s long-term prospects despite near-term market fluctuations.
Quarterly Results and Market Reaction
The operational backdrop for these developments was mixed. For the fourth quarter, Badger Meter reported earnings per share of $1.14, which narrowly missed the consensus analyst estimate of $1.15. In response, the research firm Argus downgraded the stock to a “Hold” rating in early February.
Investor positioning has been varied. While institutional holder Rhumbline Advisers reduced its stake by 11.5%, other firms like Franklin Resources and Boston Trust Walden increased their holdings. Trading around $155.33 recently, the stock commands a price-to-earnings multiple of approximately 32.36. The market has shown resilience, seemingly supported by the shareholder-friendly capital allocation moves and the direct purchases from the company’s leadership.
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