Badger Meter’s (BMI) Revenue Contraction Signals Demand Air Pocket

3 weeks ago 14

Soumya Eswaran

Thu, August 6, 2026 astatine 8:33 AM CDT 3 min read

Conestoga Capital Advisors, an plus absorption company, released its second-quarter 2026 capitalist letter. A transcript of the missive tin be downloaded here. The missive reports a affirmative marketplace displacement towards Small Caps, with the Russell 2000 Index achieving its champion archetypal fractional since 1991 and the Russell 2000 Growth Index up 25.7% successful Q2, fueled by AI enthusiasm and semiconductor stocks. However, marketplace enactment was uneven, mirroring the Tech Bubble, with high-beta stocks outperforming portion high-quality companies lagged, which impacted Conestoga's quality-focused strategies. Management expressed assurance successful semipermanent outcomes, noting that speculative enactment won't past arsenic monetary argumentation tightens and marketplace breadth improves. The steadfast remains committed to high-quality maturation businesses, expecting these to regain favour arsenic enactment broadens. The Conestoga Small Cap Composite returned 14.32% net-of-fees successful the 2nd quarter, with 25.71% for the Russell 2000 Growth Index. Narrow Index enactment wounded the comparative results, but it besides hid Composite improvements. In addition, delight cheque the Strategy's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Conestoga Capital Advisors highlighted Badger Meter, Inc. (NYSE:BMI). Badger Meter, Inc. (NYSE:BMI), a US-based travel measurement, quality, control, and connection solutions institution with a beardown absorption connected Utility h2o astute metering solutions and bundle technologies, was exited from the portfolio during the quarter. On August 05, 2026, Badger Meter, Inc. (NYSE:BMI) closed astatine $139.44 per share, reflecting a marketplace capitalization of $4.04 billion. Badger Meter, Inc. (NYSE:BMI) posted a one-month instrumentality of -3.16%, portion its shares mislaid 25.65% implicit the past 52 weeks.

Conestoga Capital Advisors stated the following regarding Badger Meter, Inc. (NYSE:BMI) successful its Q2 2026 capitalist letter:

"Badger Meter, Inc. (NYSE:BMI) manufactures astute h2o meters, and power solutions for inferior and concern customers. We exited the presumption aft the institution reported a diminution successful 1Q gross and debased visibility for a meaningful recovery. While BMI absorption believes determination was nary 'pull forward' of request station pandemic, it appears accrued enactment successful caller years whitethorn person created an aerial pouch of demand."

Barclays Initiates Badger Meter (BMI) Coverage, Citing Valuation and Growth Concerns

Badger Meter, Inc. (NYSE:BMI) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 29 hedge money portfolios held Badger Meter, Inc. (NYSE:BMI) astatine the extremity of the archetypal quarter, up from 27 successful the erstwhile quarter. While we admit the imaginable of Badger Meter, Inc. (NYSE:BMI) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

Read Entire Article