Energy Recovery, Inc. (NASDAQ:ERII) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on Energy Recovery, with three hold ratings, one sell, and one buy; the average 12-month price target is $13.50.
• ERII shares opened at $7.90, near their 52-week low of $7.51, after the company reported quarterly revenue of $12.0 million and a loss of $0.03 per share, both below analyst expectations.
• Institutional investors own 83.58% of the stock, while insider activity was mixed: a director increased holdings by 25.13%, whereas a senior vice president sold shares.

Shares of Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) have received an average rating of "Hold" from the five ratings firms that are currently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $13.50.

ERII has been the topic of several recent research reports. B. Riley Financial lowered their target price on shares of Energy Recovery from $10.00 to $8.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. Freedom Capital downgraded Energy Recovery from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. Wall Street Zen lowered Energy Recovery from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Seaport Research Partners reaffirmed a "buy" rating and issued a $12.00 price objective on shares of Energy Recovery in a report on Wednesday, May 13th. Finally, Weiss Ratings downgraded Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, August 19th.

Insider Transactions at Energy Recovery

In related news, Director Colin R. Sabol purchased 11,180 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was acquired at an average price of $8.88 per share, with a total value of $99,278.40. Following the completion of the purchase, the director directly owned 55,671 shares in the company, valued at $494,358.48. This trade represents a 25.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Rodney Clemente sold 5,387 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $8.56, for a total transaction of $46,112.72. Following the sale, the senior vice president directly owned 108,301 shares of the company's stock, valued at $927,056.56. This represents a 4.74% decrease in their position. The SEC filing for this sale provides additional information. 2.50% of the stock is owned by insiders.

Institutional Trading of Energy Recovery

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada increased its stake in Energy Recovery by 43.1% in the first quarter. Royal Bank of Canada now owns 16,257 shares of the industrial products company's stock valued at $258,000 after acquiring an additional 4,899 shares during the last quarter. Jacobs Levy Equity Management Inc. bought a new stake in Energy Recovery during the first quarter worth $341,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Energy Recovery by 7.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,929 shares of the industrial products company's stock valued at $714,000 after purchasing an additional 3,185 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Energy Recovery by 10.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 206,038 shares of the industrial products company's stock valued at $3,274,000 after purchasing an additional 19,992 shares in the last quarter. Finally, Jane Street Group LLC increased its stake in shares of Energy Recovery by 54.4% in the 1st quarter. Jane Street Group LLC now owns 122,369 shares of the industrial products company's stock valued at $1,944,000 after purchasing an additional 43,089 shares during the last quarter. Institutional investors own 83.58% of the company's stock.

Energy Recovery Stock Performance

ERII stock opened at $7.90 on Friday. The company's 50-day simple moving average is $8.50 and its 200 day simple moving average is $9.87. Energy Recovery has a 52 week low of $7.51 and a 52 week high of $18.32. The company has a market capitalization of $407.17 million, a PE ratio of 28.21 and a beta of 0.91.

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

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