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

Key Points

• Energy Recovery, Inc. has a consensus recommendation of "Buy" from five brokerages, with an average 1-year price objective of $18.17.
• Recent insider activity includes Director Arve Hanstveit selling 30,000 shares while Director Pamela L. Tondreau purchased 4,200 shares, indicating mixed sentiment among company insiders.
• In its latest earnings report, Energy Recovery missed analysts' estimates with ($0.13) earnings per share and reported a revenue drop of 33.1% from the previous year.

Shares of Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) have received an average rating of "Buy" from the five brokerages that are presently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a hold rating, two have given a buy rating and two have issued a strong buy rating on the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $18.17.

A number of equities analysts have weighed in on ERII shares. B. Riley cut shares of Energy Recovery from a "buy" rating to a "neutral" rating and decreased their price objective for the company from $20.00 to $12.50 in a research report on Thursday, May 8th. Fearnley Fonds raised shares of Energy Recovery from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 20th. Finally, Wall Street Zen lowered shares of Energy Recovery from a "buy" rating to a "hold" rating in a research note on Thursday, May 8th.

Insider Transactions at Energy Recovery

In other news, CEO David W. Moon purchased 4,200 shares of the stock in a transaction dated Tuesday, May 13th. The stock was acquired at an average cost 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. The trade was a 12.82% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Pamela L. Tondreau acquired 4,200 shares of Energy Recovery stock in a transaction that occurred on Wednesday, May 14th. The shares were purchased at an average price of $12.28 per share, for a total transaction of $51,576.00. Following the completion of the purchase, the director directly owned 41,043 shares of the company's stock, valued at $504,008.04. The trade was a 11.40% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold a total of 55,387 shares of company stock worth $710,656 in the last quarter. Insiders own 3.20% of the company's stock.

Institutional Investors Weigh In On Energy Recovery

Several institutional investors and hedge funds have recently bought and sold shares of ERII. Trust Co. of Toledo NA OH acquired a new stake in shares of Energy Recovery in the second quarter valued at approximately $37,000. FNY Investment Advisers LLC acquired a new stake in shares of Energy Recovery in the second quarter valued at approximately $80,000. Russell Investments Group Ltd. increased its stake in shares of Energy Recovery by 5,662.3% in the first quarter. Russell Investments Group Ltd. now owns 8,701 shares of the industrial products company's stock valued at $138,000 after purchasing an additional 8,550 shares during the period. Schroder Investment Management Group acquired a new stake in shares of Energy Recovery in the fourth quarter valued at approximately $160,000. Finally, American Century Companies Inc. acquired a new stake in shares of Energy Recovery in the first quarter valued at approximately $162,000. Institutional investors and hedge funds own 83.58% of the company's stock.

Energy Recovery Stock Down 4.9%

Shares of ERII traded down $0.66 during mid-day trading on Friday, reaching $12.79. 565,932 shares of the stock traded hands, compared to its average volume of 367,916. The stock has a fifty day simple moving average of $12.89 and a 200 day simple moving average of $14.17. Energy Recovery has a 12-month low of $10.86 and a 12-month high of $20.27. The firm has a market cap of $697.06 million, a price-to-earnings ratio of 34.57 and a beta of 1.03.

Energy Recovery (NASDAQ:ERII - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The industrial products company reported ($0.13) earnings per share for the quarter, missing analysts' consensus estimates of $0.03 by ($0.16). The firm had revenue of $8.07 million for the quarter, compared to analyst estimates of $21.97 million. Energy Recovery had a net margin of 15.21% and a return on equity of 9.96%. Energy Recovery's revenue for the quarter was down 33.1% on a year-over-year basis. During the same period in the previous year, the business posted ($0.08) earnings per share. On average, equities research analysts expect that Energy Recovery will post 0.36 earnings per share for the current fiscal year.

Energy Recovery Company Profile

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.