B. Riley Issues Positive Forecast for Energy Recovery (NASDAQ:ERII) Stock Price

Key Points

• B. Riley has raised its price target for Energy Recovery Inc. (NASDAQ: ERII) from $12.50 to $14.00, maintaining a "neutral" rating amidst a potential downside of 5.02% from the previous close.
• Despite an increase in stock price trading up 8.2%, Energy Recovery announced a disappointing quarterly earnings report, missing consensus estimates with ($0.13) EPS against expected earnings of $0.03.
• Recent insider activity shows both the Director and CEO purchased shares, increasing their ownership by 11.40% and 12.82% respectively, signaling confidence in the company's performance.

Energy Recovery (NASDAQ:ERII - Get Free Report) had its price objective lifted by equities research analysts at B. Riley from $12.50 to $14.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the industrial products company's stock. B. Riley's target price suggests a potential downside of 5.02% from the company's previous close.

A number of other equities research analysts also recently commented on ERII. Wall Street Zen downgraded Energy Recovery from a "buy" rating to a "hold" rating in a report on Thursday, May 8th. Fearnley Fonds upgraded shares of Energy Recovery from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 20th. Two analysts have rated the stock with a hold rating, two have given a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target of $18.67.

Energy Recovery Trading Up 8.2%

ERII stock traded up $1.12 during trading on Thursday, reaching $14.74. 368,039 shares of the stock were exchanged, compared to its average volume of 419,799. Energy Recovery has a twelve month low of $10.86 and a twelve month high of $20.27. The company has a market capitalization of $803.33 million, a P/E ratio of 39.82 and a beta of 1.03. The stock has a 50 day simple moving average of $12.95 and a 200-day simple moving average of $14.16.

Energy Recovery (NASDAQ:ERII - Get Free Report) last announced its quarterly earnings results on Wednesday, May 7th. The industrial products company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.16). The business had revenue of $8.07 million for the quarter, compared to the consensus estimate of $21.97 million. Energy Recovery had a return on equity of 9.96% and a net margin of 15.21%. The firm's revenue for the quarter was down 33.1% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.08) EPS. Equities analysts predict that Energy Recovery will post 0.36 EPS for the current year.

Insider Activity

In other Energy Recovery news, Director Pamela L. Tondreau purchased 4,200 shares of the business's stock in a transaction dated Wednesday, May 14th. The shares were bought at an average price of $12.28 per share, for a total transaction of $51,576.00. Following the completion of the acquisition, the director owned 41,043 shares in the company, valued at approximately $504,008.04. This trade represents a 11.40% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO David W. Moon purchased 4,200 shares of the business's stock in a transaction dated Tuesday, May 13th. The shares were acquired at an average price of $12.20 per share, for a total transaction of $51,240.00. Following the acquisition, the chief executive officer owned 36,950 shares of the company's stock, valued at $450,790. This trade represents a 12.82% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders sold 55,387 shares of company stock valued at $710,656. 3.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Energy Recovery

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. grew its position in Energy Recovery by 3.7% in the 1st quarter. Ameriprise Financial Inc. now owns 5,138,893 shares of the industrial products company's stock worth $81,657,000 after purchasing an additional 184,942 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Energy Recovery by 7.5% during the 1st quarter. Vanguard Group Inc. now owns 3,494,872 shares of the industrial products company's stock valued at $55,534,000 after buying an additional 242,494 shares in the last quarter. Invesco Ltd. raised its position in shares of Energy Recovery by 14.4% during the 4th quarter. Invesco Ltd. now owns 858,309 shares of the industrial products company's stock valued at $12,617,000 after buying an additional 107,800 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Energy Recovery by 13.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 768,091 shares of the industrial products company's stock valued at $11,291,000 after buying an additional 89,248 shares in the last quarter. Finally, Select Equity Group L.P. raised its position in shares of Energy Recovery by 403.5% during the 1st quarter. Select Equity Group L.P. now owns 667,157 shares of the industrial products company's stock valued at $10,601,000 after buying an additional 534,662 shares in the last quarter. 83.58% of the stock is owned by institutional investors.

About Energy Recovery

Energy Recovery, Inc, together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the Americas, the Middle East, Africa, Asia, and Europe. The company operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation booster pumps for use in seawater and brackish desalination, and wastewater treatment.

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