Exploring Badger Meter, Inc. (BMI) Investor Profile: Who’s Buying and Why?

You're looking at Badger Meter, Inc. (BMI) and trying to figure out if the smart money is still flowing into this water technology play, right? The short answer is yes, they defintely are, but the institutional buying isn't just about water scarcity-it's about the high-margin digital transition, which is why close to 93.12% of the company's stock is held by institutions like BlackRock, Inc., which alone holds a massive 17.65% stake worth over $914.90 million. This conviction is grounded in performance; the company just reported Q3 2025 total sales of $235.7 million, a 13% year-over-year jump, with diluted earnings per share (EPS) rising 10% to $1.19, blowing past analyst estimates. So, what's driving these giants to pay a premium for a stock trading around $175.90 a share-is it the recurring software-as-a-service (SaaS) revenue from their BlueEdge suite, or the structural margin expansion to 40.7%? Let's dig into the specific investor profiles and the core thesis that's keeping this stock on a strong buy consensus.

Who Invests in Badger Meter, Inc. (BMI) and Why?

If you're looking at Badger Meter, Inc. (BMI), you're seeing a company whose investor base is overwhelmingly institutional, reflecting its profile as a stable, dividend-growing play in the critical water technology sector. The ownership breakdown shows that the stock is defintely not a retail-driven story; it's a core holding for massive asset managers who value long-term trends and consistent financial performance.

Institutional investors hold a commanding position, owning approximately 93.12% of the outstanding shares. This means the stock's price movements are largely dictated by the buying and selling of large funds, not individual investors, who account for only about 2.58% of the ownership. It's a classic institutional favorite.

The table below highlights the sheer scale of the largest holders, based on their September 30, 2025, filings:

Investment Strategies: The Long-Term Passive Core

The dominance of firms like BlackRock, Inc. and The Vanguard Group, Inc. tells you most of the stock is held in passive investment vehicles, like index funds and exchange-traded funds (ETFs). These investors aren't trying to time the market; they're buying and holding for the long haul because Badger Meter, Inc. is a component of a specific index, like a small-cap or dividend-growth index. This creates a stable, sticky demand base for the stock.

For active managers and individual investors, the strategies break down into two main camps:

• Long-Term Growth and Income: This is the primary active strategy, driven by the company's status as a Dividend Aristocrat-it increased its annual dividend for the 33rd consecutive year in 2025. The new annual dividend rate of $1.60 per share, authorized in August 2025, reinforces its appeal to income-focused portfolios.
• Growth at a Reasonable Price (GARP): Analysts are attracted to the combination of steady growth and a compelling valuation narrative. For example, some forecasts suggest a fair value of up to $232.57 per share, implying a significant upside for those who believe in the company's long-term growth trajectory.

Motivations: Growth, Dividends, and a Critical Market Position

Investors are drawn to Badger Meter, Inc. for three clear reasons, all grounded in its strong 2025 performance and market position. First, the company is a pure-play on the secular trend of modernizing water infrastructure. Most U.S. water and sewer utilities are still running on outdated mechanical systems, and Badger Meter, Inc.'s digital solutions, like the BlueEdge™ portfolio and cellular Automated Metering Infrastructure (AMI), are the clear beneficiaries of this multi-decade shift.

Second, the financial results from the 2025 fiscal year confirm the strategy is working. For the third quarter of 2025, the company reported total sales of $235.7 million, a 13% increase year-over-year, and diluted earnings per share (EPS) of $1.19, up 10% from the prior year. This demonstrates solid operating leverage and margin expansion.

Third, the commitment to shareholder returns is a huge factor. The 18% increase in the quarterly dividend to $0.40 per share in 2025 is a concrete signal of management's confidence in future cash flow, which hit a record high. This consistent history of delivering value is a key pillar of their capital allocation framework and a major reason why long-term investors stick around. If you want to dive deeper into the business model, check out Badger Meter, Inc. (BMI): History, Ownership, Mission, How It Works & Makes Money.

Institutional Ownership and Major Shareholders of Badger Meter, Inc. (BMI)

You're looking at Badger Meter, Inc. (BMI), a company with a strong growth story in smart water technology, and you need to know who the big money is betting on it. The direct takeaway is this: institutional investors own nearly 90% of the stock, which is a massive vote of confidence but also means the stock price is highly sensitive to their collective sentiment and portfolio shifts. This high concentration is why the stock trades at a premium.

As of the end of the third quarter of the 2025 fiscal year (09/30/2025), a staggering 89.01% of Badger Meter, Inc.'s shares outstanding are held by institutional investors, including mutual funds, pension funds, and asset managers. This is a critical factor for any investor to understand, as it signifies a belief in the long-term value proposition of the company's water solutions business. Badger Meter, Inc. (BMI): History, Ownership, Mission, How It Works & Makes Money has a deep bench of professional backing.

Top Institutional Investors and Their Stakes

The top shareholders of Badger Meter, Inc. are the usual suspects, the giants of the asset management world. These firms hold billions of dollars in assets under management and their positions in BMI reflect a long-term, strategic allocation to the industrial technology and water sector. Here's a quick look at the top three, based on 09/30/2025 filings:

• BlackRock, Inc.: Holds the largest stake with 5,201,263 shares, representing 17.65% of the total shares outstanding.
• The Vanguard Group, Inc.: The second largest, owning 3,960,308 shares, or 13.44%.
• State Street Corporation: Controls 1,402,985 shares, accounting for 4.76% of the company.

These three alone account for over a third of the company's equity, which is defintely a lot of influence concentrated in a few hands. You need to watch their movements closely.

Recent Shifts in Institutional Ownership (Q3 2025)

The third quarter of 2025 saw a fascinating mix of buying and selling among the top institutional holders, which is typical as fund managers rebalance their portfolios around strong earnings reports. Badger Meter, Inc. reported Q3 2025 sales of $235.7 million and diluted earnings per share (EPS) of $1.19, beating analyst estimates, so the trading activity reflects a reaction to that strength.

Here's the quick math on the major changes:

The net buying from firms like Invesco Ltd. and JPMorgan Chase & Co. shows a clear appetite for the stock following the strong Q3 performance. But, still, the minor selling from BlackRock, Inc. and State Street Corporation suggests some profit-taking or reallocation, not a loss of faith. The overall institutional ownership percentage remains stubbornly high.

Impact on Stock Price and Strategy

The sheer volume of institutional ownership-that 89.01% figure-plays two crucial roles. First, it provides a layer of stability. These are not day traders; they are long-term holders who conduct deep due diligence on the company's fundamentals and its strategic direction, like its focus on smart water solutions and the BEACON® Software as a Service (SaaS) platform.

Second, this conviction is directly responsible for the stock's premium valuation. Badger Meter, Inc. currently trades at a price-to-earnings (P/E) ratio of about 37.38, which is noticeably higher than the broader market. What this estimate hides is that institutional investors are willing to pay this premium because they believe in the company's high single-digit revenue growth targets and its ability to capture a larger share of the growing water conservation market. Their collective backing affirms the company's strategy, which is why analysts have a consensus 'Moderate Buy' rating with an average target price of $227.33.

The risk here is that a sudden, coordinated shift by a few of these large players could cause significant volatility, but for now, their money is affirming the management's focus on high-margin software and technology. Finance: Monitor the next round of 13F filings for Q4 2025 to see if the net buying trend continues.

Key Investors and Their Impact on Badger Meter, Inc. (BMI)

You're looking at Badger Meter, Inc. (BMI) and trying to figure out who's really behind the stock's stability and growth. The short answer is: big institutions, and they own nearly all of it. This isn't a stock driven by retail traders; it's a core holding for major asset managers, which signals a long-term, low-volatility investment thesis.

As of the third quarter of 2025, institutional investors-think massive funds like Blackrock and Vanguard-own about 89.01% of Badger Meter, Inc.'s outstanding stock. That level of concentration means the company's stock movements are more influenced by large-scale capital flows and strategic portfolio rebalancing than by individual news cycles or activist campaigns. It's a sign of a high-quality, 'buy-and-hold' business model, which is defintely what you want in the water utility space.

The Institutional Heavyweights: Who Owns the Most Shares?

The investor profile for Badger Meter, Inc. is dominated by the world's largest index and passive fund managers. These firms typically buy and hold the stock to match an index's performance, which provides a strong, consistent floor for the share price. They're not looking for a quick flip; they're betting on the long-term trend of water infrastructure modernization.

Here's a quick look at the top institutional holders and their positions as of September 30, 2025:

• Blackrock, Inc.: Holds the largest stake with 5,201,263 shares.
• Vanguard Group Inc.: The second largest, holding 3,960,308 shares.
• State Street Corp.: A significant holder with 1,402,985 shares.

These three alone manage billions in assets and their combined position acts as a massive anchor. Their focus is less on operational influence and more on governance and capital allocation, ensuring the company maintains its dividend growth streak-now at 33 consecutive years, with the annual rate recently raised to $1.60 per share.

Recent Moves and the Underlying Thesis

Looking at the third quarter of 2025, the trading activity by these major players tells a story of strategic positioning around the company's strong performance. Badger Meter, Inc. reported Q3 2025 total sales of $235.7 million and diluted earnings per share (EPS) of $1.19, beating analyst estimates. This beat encouraged some significant buying, particularly from active managers and international funds.

Here's the quick math on who was moving capital:

What this estimate hides is the motivation. While Blackrock and State Street Corp. slightly trimmed their positions-likely routine index rebalancing-Vanguard, Invesco Ltd., JPMorgan Chase & Co., and especially Amundi significantly increased their stakes. Amundi's near 100% increase in shares is a strong vote of confidence in the company's focus on digital water solutions, like the BEACON® Software as a Service (SaaS) platform, which is a key driver of their utility water sales. This buying pressure helps keep the stock price elevated, reflecting the high growth expectations for the full year 2025, which analysts project will see revenue hit about $925.06 million.

Investor Influence: Stability Over Activism

The influence of these investors is primarily felt through stability and a focus on long-term capital efficiency, not through activist demands. Given the utility-centric and essential nature of Badger Meter, Inc.'s business, which you can read more about in their Mission Statement, Vision, & Core Values of Badger Meter, Inc. (BMI)., the shareholders want steady execution.

The high institutional ownership means management is accountable for consistent performance, like generating robust cash flow from operations, which was $51.3 million in Q3 2025. This financial flexibility, including approximately $200 million in net cash, is what allows the company to fund strategic acquisitions and continue its dividend policy, which is a major draw for the funds that own the stock. The risk here isn't a proxy fight, but rather a collective sell-off if the company misses on its high single-digit top-line growth projection over the next five years.

Your action is clear: track the 13F filings of these top holders for any major shifts in their conviction, especially the active buyers like Invesco Ltd. and Amundi. If they start selling in large volumes, it's a signal that the long-term thesis is cracking.

Market Impact and Investor Sentiment

The investor profile for Badger Meter, Inc. (BMI) is complex, showing strong institutional confidence mixed with a cautious near-term market reaction. The overall sentiment from the professional investment community leans toward a 'Moderate Buy' or 'Buy' consensus, but this optimism is tempered by valuation concerns and recent stock volatility.

You can see this positive bias in the sheer volume of institutional money involved. As of late 2025, institutional investors own a commanding 89.01% of the stock. This signals that large, long-term asset managers like BlackRock, Inc. and The Vanguard Group, Inc. see the company's smart water technology as a durable growth story. It's a classic 'flight to quality' in a defensive sector like water infrastructure.

• BlackRock, Inc. holds 5,201,263 shares (17.65%).
• The Vanguard Group, Inc. holds 3,960,308 shares (13.44%).
• Institutional ownership dominates the stock, minimizing retail influence.

Ownership Moves and the Stock's Recent Jitters

While the big institutional holders are largely stable, the stock market's reaction to recent financial results shows investors are defintely sensitive to growth deceleration. For instance, the stock plunged 10.7% following the Q2 2025 earnings report. This wasn't because the company lost money; it was because the market punished a slowdown in growth and a slight contraction in operating margin to 18.8% from 19.2% year-over-year.

Here's the quick math on the quarterly performance that spooked the market:

The market expects high growth from a stock trading at a premium, so a lower-than-expected EPS growth of just 4% in Q2 2025, compared to 31% in Q1 2025, triggered a sharp sell-off. This is a key example of how a growth stock's price is often a hostage to sequential performance, not just year-over-year results. Plus, insider sentiment is negative, with executives selling more than they've bought in the open market over the last year.

Analyst Consensus and Valuation Headwinds

The sell-side analyst community remains broadly positive, but their price targets suggest a premium valuation is already baked in. The consensus rating is a 'Moderate Buy' or 'Buy' from a group of analysts, with an average 12-month price target of around $227.33. This target implies a decent upside from the recent trading price, but you have to look closer at the underlying valuation models.

For the full 2025 fiscal year, analysts are projecting earnings per share (EPS) to be between $4.65 and $4.69. This is strong, but a Discounted Cash Flow (DCF) analysis, which is a core tool for any seasoned analyst, suggests the stock may be overvalued by approximately 22.1%. What this estimate hides is the potential for continued strong growth in the company's software-as-a-service (SaaS) platform, BEACON, and its BlueEdge suite, which could justify the premium over time.

Management's recent capital allocation decisions also reinforce positive long-term sentiment. In November 2025, Badger Meter, Inc. authorized a new share repurchase program of up to $75 million and increased its quarterly dividend by 18% to $0.40 per share, marking the 33rd consecutive year of dividend growth. That's a strong signal of financial health and commitment to returning capital to shareholders. If you want to dig deeper into the company's fundamentals, you should check out Breaking Down Badger Meter, Inc. (BMI) Financial Health: Key Insights for Investors.