Summary
BMI has broken below a key support level at $163.52, currently trading at $149.22 (8.7% beyond the level). This technical breakout signals selling pressure and suggests potential downward pressure. The RSI at 29.4 indicates oversold conditions, which may present a contrarian opportunity. This is a 100-day trendline break, which is more significant than shorter-term breaks as it indicates a potential shift in the longer-term trend direction.
Technical Chart
Breakout Analysis
When a stock breaks through an established support level with conviction, it often signals that the previous price barrier has been overcome. The 8.7% move beyond the support level indicates significant selling pressure.
Key Levels to Watch
| Breakout Level | $163.52 |
| Current Price | $149.22 |
| Break Distance | 8.7% |
Investment Advisor Score
45.28/100
BUYOur AI-powered investment scoring system analyzes multiple factors including fundamentals, technicals, and market sentiment to generate this score.
Company Overview
Badger Meter, Inc.
Badger Meter Inc is an innovator, manufacturer, and marketer of products incorporating flow measurement, quality, control, and other system solutions serving markets. The company's products measure water, oil, chemicals, and other fluids, and provide and communicate timely measurement data. Its product lines include two categories: sales of water meters, radios, software, and related technologies, and water quality monitoring solutions to water utilities (utility water) and sales of meters and other sensing instruments, valves, software, and other solutions for industrial applications in water, wastewater, and other industries (flow instrumentation).
Why This Matters
In the technology sector, breakouts like this one in BMI frequently signal shifting sentiment around growth trajectories. As AI and cloud adoption reshape enterprise spending, tech companies that demonstrate strong positioning often see sustained institutional accumulation that pushes prices through key technical levels.
Despite the technical breakdown, BMI maintains a 15.4% profit margin. This fundamental strength may provide eventual support if the selling is overdone.
Financial Health (SEC Data)
Based on the latest SEC filings, here's an analysis of BMI's financial position:
Profitability Analysis
| Revenue | $901.14M |
| Net Income | $138.78M |
| Profit Margin | 15.4% |
With a 15.4% profit margin, BMI shows healthy profitability, suggesting solid business fundamentals.
Options Market Insight
| Unusual Activity Score | 5.3 |
Technical Indicators
| RSI (14) | 29.4 |
| MACD Signal | Bearish |
| 50-Day SMA | $175.60 |
| 200-Day SMA | $177.05 |
| Price vs MAs | Below both (Bearish) |
Next Levels to Watch
| 50-Day SMA | $175.60 |
| 200-Day SMA | $177.05 |
Price has already broken below the 200-day SMA at $177.05, which is a bearish signal suggesting the longer-term trend may be turning down. Price is below the 50-day SMA at $175.60, confirming short-term bearish momentum.
Trading Considerations
- Confirmation: Watch for sustained price action below $163.52
- Volume: Look for volume confirmation on continued moves
- Role Reversal: Broken level at $163.52 may now act as resistance
- Risk Management: Always use stop-loss orders
Conclusion
BMI's break below the $163.52 support level represents a significant technical development. Traders should monitor price action and volume for confirmation of this bearish signal.
Related Analysis for BMI
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. Always do your own research and consider your risk tolerance before making trading decisions.