Energy Recovery (NASDAQ:ERII) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Energy Recovery from “hold” to “strong sell.” Analysts overall rate the stock “Reduce,” with an average price target of $11.67.
• Energy Recovery reported a quarterly loss of $0.10 per share, missing estimates of a $0.06 loss, while revenue of $11.2 million came in below the $16.16 million consensus forecast.
• Shares opened at $6.71, near their 52-week low of $6.24 and well below their 52-week high of $16.30.

Energy Recovery (NASDAQ:ERII - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Wednesday, Zacks reports.

Several other analysts have also recently commented on the company. Seaport Research Partners cut Energy Recovery from a "buy" rating to a "neutral" rating in a report on Monday, September 14th. Weiss Ratings cut Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, September 16th. Finally, B. Riley Financial dropped their price target on shares of Energy Recovery from $10.00 to $8.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Three investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Energy Recovery has an average rating of "Reduce" and an average target price of $11.67.

Energy Recovery Stock Performance

NASDAQ ERII opened at $6.71 on Wednesday. Energy Recovery has a fifty-two week low of $6.24 and a fifty-two week high of $16.30. The stock has a market cap of $345.83 million, a PE ratio of 79.67 and a beta of 0.89. The firm's fifty day moving average price is $7.03 and its two-hundred day moving average price is $9.49.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its earnings results on Wednesday, November 4th. The industrial products company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.04). The firm had revenue of $11.20 million during the quarter, compared to analyst estimates of $16.16 million. Energy Recovery had a return on equity of 2.74% and a net margin of 5.15%. As a group, sell-side analysts predict that Energy Recovery will post -0.17 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Energy Recovery

Several institutional investors and hedge funds have recently bought and sold shares of ERII. BlackRock Inc. purchased a new position in Energy Recovery in the 2nd quarter valued at approximately $57,225,000. Amundi boosted its position in shares of Energy Recovery by 31.2% during the 1st quarter. Amundi now owns 3,740,309 shares of the industrial products company's stock valued at $37,648,000 after acquiring an additional 888,618 shares during the last quarter. Legal & General Group Plc purchased a new position in Energy Recovery in the 2nd quarter worth approximately $18,579,000. Kopion Asset Management LLC increased its stake in Energy Recovery by 59.2% in the third quarter. Kopion Asset Management LLC now owns 1,018,133 shares of the industrial products company's stock valued at $6,791,000 after acquiring an additional 378,588 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Energy Recovery by 47.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 514,102 shares of the industrial products company's stock valued at $5,177,000 after purchasing an additional 165,915 shares during the last quarter. 83.58% of the stock is owned by institutional investors.

Energy Recovery Company Profile

Energy Recovery, Inc develops and manufactures energy-efficiency technologies for industrial fluid-flow applications. The company is best known for its pressure exchanger systems, which capture hydraulic energy from high-pressure fluid streams and transfer it to lower-pressure incoming fluids. This process can reduce energy consumption and operating costs in demanding industrial environments.

Energy Recovery's products are used extensively in seawater and brackish-water reverse-osmosis desalination, where its PX Pressure Exchanger technology helps recover energy from the high-pressure reject stream.

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