Energy Recovery, Inc. (NASDAQ:ERII) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Energy Recovery has a consensus “Reduce” rating from four analysts: one recommends selling and three advise holding. The average 12-month price target is $11.67.
• Shares opened at $7.03, near their 52-week low of $6.89 and well below the 52-week high of $18.32. Recent analyst actions included downgrades and a price-target cut by B. Riley from $10 to $8.
• The company missed quarterly expectations, reporting a $0.03 loss per share versus an expected $0.02 loss and revenue of $12.0 million versus an $18.36 million estimate. Institutional investors own 83.58% of the stock.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the four analysts that are covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating and three have given a hold rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $11.6667.

ERII has been the topic of a number of recent research reports. Seaport Research Partners downgraded Energy Recovery from a "buy" rating to a "neutral" rating in a research report on Monday, September 14th. Weiss Ratings downgraded Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, September 16th. Finally, B. Riley Financial cut their price objective 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.

Energy Recovery Price Performance

Shares of NASDAQ:ERII opened at $7.03 on Tuesday. The company has a market capitalization of $362.36 million, a P/E ratio of 25.11 and a beta of 0.90. Energy Recovery has a 1-year low of $6.89 and a 1-year high of $18.32. The firm's 50 day simple moving average is $8.00 and its two-hundred day simple moving average is $9.01.

Energy Recovery (NASDAQ:ERII - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The industrial products company reported ($0.03) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.01). Energy Recovery had a net margin of 12.72% and a return on equity of 8.25%. The company had revenue of $12.00 million for the quarter, compared to the consensus estimate of $18.36 million. On average, sell-side analysts anticipate that Energy Recovery will post -0.17 earnings per share for the current fiscal year.

Insider Buying and Selling at Energy Recovery

In other Energy Recovery news, SVP Rodney Clemente sold 5,387 shares of the firm's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $8.56, for a total transaction of $46,112.72. Following the transaction, the senior vice president directly owned 108,301 shares in the company, valued at $927,056.56. This trade represents a 4.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Energy Recovery

Several institutional investors have recently bought and sold shares of the company. Engineers Gate Manager LP purchased a new position in shares of Energy Recovery in the 2nd quarter valued at approximately $190,000. NewEdge Advisors LLC purchased a new position in Energy Recovery during the 2nd quarter worth approximately $518,000. Squarepoint Ops LLC lifted its holdings in shares of Energy Recovery by 198.8% in the 2nd quarter. Squarepoint Ops LLC now owns 125,140 shares of the industrial products company's stock valued at $1,129,000 after buying an additional 83,262 shares during the period. Corient Private Wealth LP acquired a new position in shares of Energy Recovery in the second quarter worth about $302,000. Finally, Amundi lifted its holdings in Energy Recovery by 7.0% during the second quarter. Amundi now owns 4,003,535 shares of the industrial products company's stock valued at $36,094,000 after purchasing an additional 263,226 shares in the last quarter. 83.58% of the stock is currently owned by institutional investors and hedge funds.

About Energy Recovery

Energy Recovery, Inc develops and manufactures energy-recovery and fluid-management technologies for industrial applications. The company is best known for its PX Pressure Exchanger, which transfers hydraulic energy from high-pressure reject streams to incoming feedwater, helping reduce the energy requirements of seawater and brackish-water desalination systems.

Its products and related technologies are used in municipal and industrial water treatment, desalination, oil and gas, chemical processing, and other applications involving high-pressure fluids.

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