Hedge Funds Are Buying Up Badger Meter, Inc. (BMI): Why Have They Become So Bullish?

As aggregate interest increased, specific money managers were breaking ground themselves. Renaissance Technologies assembled the biggest position in Badger Meter, Inc. (NYSE:BMI). Renaissance Technologies had $4.4 million invested in the company at the end of the quarter. Millennium Management also made a $2.6 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors, David E. Shaw’s D E Shaw, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Badger Meter, Inc. (NYSE:BMI) but similarly valued. These stocks are Standex Int’l Corp. (NYSE:SXI), BJ’s Restaurants, Inc. (NASDAQ:BJRI), Rouse Properties Inc (NYSE:RSE), and The Ensign Group, Inc. (NASDAQ:ENSG). This group of stocks’ market caps resemble BMI’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $46 million in BMI’s case. BJ’s Restaurants, Inc. (NASDAQ:BJRI) is the most popular stock in this table. On the other hand Rouse Properties Inc (NYSE:RSE) is the least popular one with only 1 bullish hedge fund positions. Badger Meter, Inc. (NYSE:BMI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BJRI might be a better candidate to consider taking a long position in, though BMI should be closely watched as smart money continues to find reasons to buy it.

Disclosure: None