This Fund Just Dumped Itron Stock, but Should Long-Term Investors Follow Suit?

Company Overview - Itron, Inc. is a leading provider of integrated technology solutions for managing energy and water resources efficiently, leveraging hardware, software, and data analytics capabilities [5] - The company reported a total revenue of $2.41 billion and a net income of $257.5 million for the trailing twelve months (TTM) [4] Recent Performance - Itron's shares experienced a significant rally followed by a sharp pullback of approximately 20%, indicating a potential decision to lock in gains rather than a loss of confidence in the business [6] - The company's revenue declined by 5% year over year to $582 million, attributed to project timing and portfolio optimization, while gross margin expanded by 360 basis points to 37.7% [9] Financial Metrics - As of the latest report, Itron's free cash flow nearly doubled to $113 million, highlighting its ability to convert earnings into liquidity despite revenue pressures [9] - The company has a backlog of $4.3 billion and is experiencing growing recurring revenue in its Outcomes segment, positioning it well for long-term utility spending related to grid modernization and smart infrastructure [10] Market Position - Itron's stock price as of the latest report was $95.22, reflecting a 15% decline over the past year, underperforming the S&P 500, which increased by about 13% during the same period [3] - Following a sale of 123,119 shares by Aristotle Capital Boston, Itron now accounts for approximately 1.95% of the fund's reportable U.S. equity assets under management (AUM) [2][3]