Slower-Than-Anticipated Regulatory Approvals Hurt Itron (ITRI) in Q4

Aristotle Capital Boston, LLC, an investment advisor, released its fourth-quarter investor letter for “Small Cap Equity Fund”. A copy of the letter can be downloaded here. U.S. small-cap equities reported modest gains in the fourth quarter of 2025. The quarter started as a continuation of the post-Liberation Day risk-on market environment, while it ended on a strong note, driven by a positive macroeconomic backdrop. Attractive valuations, earnings recovery, broadening of the market, and a shift from mega-cap stocks supported small caps in the quarter. The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, trailing the 2.19% total return of the Russell 2000 Index. Security selection supported overall performance, while allocation effects detracted from performance. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Aristotle Small Cap Equity Fund identified Itron, Inc. (NASDAQ:ITRI) as a major performance detractor. Itron, Inc. (NASDAQ:ITRI) is a technology solutions and service company that focuses on water and energy resources management. On February 13, 2026, Itron, Inc. (NASDAQ:ITRI) stock closed at $89.36 per share. One-month return of Itron, Inc. (NASDAQ:ITRI) was -10.68%, and its shares are down 7.88% over the past twelve months. Itron, Inc. (NASDAQ:ITRI) has a market capitalization of $4.093 billion.

Aristotle Small Cap Equity Fund stated the following regarding Itron, Inc. (NASDAQ:ITRI) in its fourth quarter 2025 investor letter:

"Itron, Inc. (NASDAQ:ITRI) is a global manufacturer and distributor of electric, water and gas meters and advanced meter systems. Shares sold off following the third quarter earnings print due to slower-than-anticipated regulatory approvals. However, we believe that these challenges will be short-lived and expect an acceleration in 2026. We maintain a position, as we believe the company remains well-positioned to benefit from power grid modernization efforts, which should continue to drive demand for the company’s smart metering and grid monitoring solutions."

Itron, Inc. (NASDAQ:ITRI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 37 hedge fund portfolios held Itron, Inc. (NASDAQ:ITRI) at the end of the third quarter, up from 35 in the previous quarter. While we acknowledge the potential of Itron, Inc. (NASDAQ:ITRI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Itron, Inc. (NASDAQ:ITRI) and shared a list of best mid cap AI stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.