Energy Recovery (NASDAQ:ERII) Shares Gap Down Following Analyst Downgrade

Shares of Energy Recovery, Inc. (NASDAQ:ERII) gapped down before the market opened on Wednesday after Northcoast Research downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $11.29, but opened at $10.48. Energy Recovery shares last traded at $10.7280, with a volume of 184,437 shares changing hands.

Several other analysts have also commented on the stock. Loop Capital set a $13.00 price target on shares of Energy Recovery in a research report on Monday, March 2nd. Weiss Ratings reissued a “hold (c-)” rating on shares of Energy Recovery in a research report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $15.00.

Insider Buying and Selling at Energy Recovery

In other Energy Recovery news, SVP Rodney Clemente sold 20,568 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $10.61, for a total value of $218,226.48. Following the sale, the senior vice president owned 116,008 shares of the company’s stock, valued at $1,230,844.88. The trade was a 15.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Arve Hanstveit sold 165,292 shares of the business’s stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $10.14, for a total value of $1,676,060.88. Following the completion of the sale, the director directly owned 384,928 shares in the company, valued at approximately $3,903,169.92. The trade was a 30.04% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 248,811 shares of company stock valued at $2,606,175 over the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Trading of Energy Recovery

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hsbc Holdings PLC raised its position in Energy Recovery by 106.5% in the fourth quarter. Hsbc Holdings PLC now owns 65,056 shares of the industrial products company’s stock valued at $874,000 after purchasing an additional 33,552 shares during the period. Aristides Capital LLC acquired a new position in shares of Energy Recovery in the fourth quarter worth $182,000. Invesco Ltd. grew its stake in shares of Energy Recovery by 15.8% in the fourth quarter. Invesco Ltd. now owns 746,036 shares of the industrial products company’s stock worth $10,064,000 after acquiring an additional 101,972 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its stake in shares of Energy Recovery by 52.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 38,950 shares of the industrial products company’s stock valued at $525,000 after acquiring an additional 13,463 shares in the last quarter. Finally, XTX Topco Ltd acquired a new stake in shares of Energy Recovery in the fourth quarter valued at $390,000. Hedge funds and other institutional investors own 83.58% of the company’s stock.

Energy Recovery Price Performance

The firm has a market capitalization of $561.05 million, a price-to-earnings ratio of 24.70 and a beta of 1.08. The firm has a 50 day moving average price of $12.00 and a 200-day moving average price of $13.91.

Energy Recovery (NASDAQ:ERII) last announced its quarterly earnings data on Wednesday, February 25th. The industrial products company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.14). The company had revenue of $66.59 million during the quarter, compared to analyst estimates of $82.59 million. Energy Recovery had a net margin of 17.01% and a return on equity of 11.92%. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. Equities research analysts predict that Energy Recovery, Inc. will post 0.36 earnings per share for the current year.

Energy Recovery Company Profile

Energy Recovery, Inc (NASDAQ: ERII) is an energy technology company specializing in the design and manufacture of high-efficiency devices that capture and repurpose energy in fluid-handling applications. The company’s core offering, the Pressure Exchanger® (PX®) device, enables seawater reverse osmosis (SWRO) desalination plants to recover and reuse hydraulic energy that would otherwise be lost during brine discharge. By integrating PX technology into desalination processes, Energy Recovery helps operators significantly reduce the energy consumption and operating costs of producing fresh water from seawater or brackish sources.

In addition to desalination solutions, Energy Recovery has expanded its portfolio to serve the oil and gas sector through turbocharger systems that improve the energy efficiency of hydraulic fracturing operations.