Long Position on BMI @ $148.00 on 11/17/2023 (Momentum)

Badger Meter, Inc. (BMI) manufactures and markets flow measurement, quality, control, and communication solutions in the United States, Asia, Canada, Europe, Mexico, the Middle East, and internationally. 

It offers mechanical or static water meters, and related radio and software technologies and services to municipal water utilities.

The company also provides flow instrumentation products, including meters, valves, and other sensing instruments to measure and control fluids going through a pipe or pipeline, including water, air, steam, oil, and other liquids and gases to original equipment manufacturers as the primary flow measurement device within a product or system, as well as through manufacturers' representatives.

In addition, the company offers ORION (SE) for traditional fixed network applications; and ORION Cellular for utility-owned fixed network infrastructure, as well as BEACON, a secure cloud-hosted software suite that establishes alerts for specific conditions and allows consumer engagement tools that permit end water customers to view and manage their water usage activity.

Its flow instrumentation products are used in water/wastewater, heating, ventilating and air conditioning, and corporate sustainability markets. The company serves water utilities, industrial, and other industries.

Shares have formed a bullish "cup and handle" following it's latest earnings release. On October 19th, BMI reported earnings of $0.88 per share on revenue of $186.19 million for the third quarter ended September 2023. The consensus earnings estimate was $0.76 per share on revenue of $179.28 million. The company beat consensus estimates by 15.79% while revenue grew 25.80% on a year-over-year basis. 

Entry Point: $148.00

Stop Loss: $140.00

Trading Range: $103.93 - $170.86

Target Price: $162.00

Position closed on 12/19/2023 at price of $156.00 with a 5.41% gain in 32 days.

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