What Makes Itron (ITRI) a Short Position?

What Makes Itron (ITRI) a Short Position? Soumya Eswaran Thu, June 18, 2026 at 3:40 PM GMT+2 3 min read ITRI ^RUT Prosper Stars & Stripes, a long/short equity fund, recently released its first-quarter 2026 investor letter.  A copy of the letter is available to download here .

In Q1 2026, the portfolio underperformed with a net return of (-5. 6%) compared to the Russell 2000 Index’s +0. 9% return and the HFRX Equity Hedge Index’s -1.

5% return. Long book performance was negative, while the short book contributed positively. Geopolitics significantly influenced the first quarter, contributing to increased inflation pressures and elevated energy prices.

Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2026. In its first-quarter 2026 investor letter, Prosper Stars & Stripes highlighted stocks like Itron, Inc. (NASDAQ: ITRI ).

Itron, Inc. (NASDAQ:ITRI) is a technology solutions and service company that focuses on water and energy resources management. On June 17, 2026, Itron, Inc.

(NASDAQ:ITRI) stock closed at $79. 26 per share. One-month return of Itron, Inc.

(NASDAQ:ITRI) was -2. 22%, and its shares lost 36. 95% over the past twelve months.

Itron, Inc. (NASDAQ:ITRI) has a market capitalization of about $3. 51 billion.

Prosper Stars & Stripes stated the following regarding Itron, Inc. (NASDAQ:ITRI) in its Q1 2026 investor letter: "Roubaix L/S has delivered strong short-side performance this year. Our strategy targets both idiosyncratic and thematic short opportunities, and one area of focus has been companies that are benefiting from the surge in electrical grid investment.

Itron, Inc. (NASDAQ:ITRI), the smart metering company, caught our attention because of its failure to participate in the utility spending tailwind as many bulls had expected. Over the past several years, Itron has pursued an aggressive acquisition strategy aimed at expanding its addressable market and diversifying its revenue base.

However, results have consistently disappointed. We believe that the disconnect is structural rather than cyclical. Utilities typically treat metering upgrades as routine maintenance rather than transformative capital investment, which is a very different narrative to the one Itron has been selling.

End-markets are project-driven, lumpy by nature, and we believe they are unlikely to deliver the sustained growth cadence implied by the company’s valuation. With AI-driven infrastructure buildout generating enthusiasm around utility spending, the gap between market expectations and Itron's likely reality became difficult to ignore. The most recent quarter confirmed our thesis: Itron missed again, citing the same lumpiness and timing issues.

We consider the stock overvalued relative to its industrial peers given revenue growth near flat, EBITDA margins in the mid-teens, and an EV/EBITDA multiple above 11x. We see further downside as we believe the market will be increasingly frustrated by the persistent gap between management’s optimistic outlook and the company’s actual results. " Story Continues Is Itron Inc.

(ITRI) the Most Promising Technology Stock to Buy Now? Itron, Inc. (NASDAQ:ITRI) is not on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 .

According to our database, 38 hedge fund portfolios held Itron, Inc. (NASDAQ:ITRI) at the end of the first quarter, compared to 46 in the previous quarter. In Q1 2026, Itron, Inc.

(NASDAQ:ITRI) reported revenue of $587 million, down compared t0 the prior year due to the timing of its large Networks projects. 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 the list of technology stocks offering more than 50% upside.

In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors. READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years . Disclosure: None.

This article is originally published at Insider Monkey .