Why Is BADGER METER INC (BMI) Stock Down Today?

Badger Meter Inc (BMI) fell 13.16% to $126.67 in intraday trading on July 22, 2026, following the release of its second-quarter 2026 earnings report. The stock's sharp decline came despite a GAAP earnings per share beat of $1.02 and revenue of $222.3 million that exceeded expectations. The move reflects investor concern over weak margins, a 7% year-over-year sales decline, and a flattish revenue outlook for 2026.

What Happened

The company reported operating earnings of $39.4 million, a 12% drop from the prior year, with a net margin of 14.6%. Management attributed the decline to lower water sales and ongoing supply chain risks. While the earnings call highlighted sequential growth and new project shipments, the guidance for 2026 suggested limited organic revenue growth. Additionally, Badger Meter announced an estimated $5 million annual amortization cost for its UDlive product, which may weigh on future margins. The same day, a class action lawsuit was disclosed by the law firm Berger Montague, adding to the stock’s downward pressure.

What The Data Shows

The stock has fallen 4.4% over the past eight sessions, from $141.66 to $135.36, and currently trades within its 52-week range of $112.09 to $247.28. The recent drop has pushed the stock below its 200-day moving average and highlights a beta of 0.64, indicating it is less volatile than the broader market. Volume has surged above its 30-day average, suggesting heightened investor activity. Meanwhile, recent price targets from analysts show a mixed outlook: Stifel raised its target to $170, while Barclays cut its target to $109.

What To Watch

The stock is expected to remain under pressure until the company provides more clarity on margin recovery and project execution. Investors should monitor the company’s full-year guidance and any follow-up from the ongoing class action lawsuit.