Energy Recovery, Inc. (NASDAQ:ERII) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts: Energy Recovery has an average rating of Moderate Buy from five firms, with a consensus 12‑month target price of $15.00.
• Earnings: The company missed last quarter's expectations (EPS $0.53 vs. $0.67; revenue $66.6M vs. $82.6M) but issued FY2026 guidance of 0.50–0.70 EPS.
• Insiders & investors: Insider William Yeung sold 7,271 shares recently (10,260 shares sold in the past 90 days) while institutional ownership remains high at 83.58%, with hedge funds like Alpha Wave significantly increasing positions.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) has earned an average rating of "Moderate Buy" from the five research firms that are covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $15.00.

ERII has been the subject of a number of recent research reports. Northcoast Research assumed coverage on shares of Energy Recovery in a report on Friday. They issued a "buy" rating and a $14.00 target price for the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Energy Recovery in a research report on Monday, December 29th. Loop Capital set a $13.00 price target on Energy Recovery in a report on Monday. Finally, B. Riley Financial reaffirmed a "neutral" rating on shares of Energy Recovery in a research report on Thursday, November 6th.

Insider Buying and Selling

In related news, insider William Yeung sold 7,271 shares of the business's stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $14.55, for a total transaction of $105,793.05. Following the completion of the transaction, the insider directly owned 90,098 shares in the company, valued at $1,310,925.90. The trade was a 7.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold a total of 10,260 shares of company stock valued at $149,663 in the last 90 days. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Energy Recovery

Large investors have recently bought and sold shares of the business. Alpha Wave Global LP grew its holdings in shares of Energy Recovery by 132.2% during the second quarter. Alpha Wave Global LP now owns 714,321 shares of the industrial products company's stock worth $9,129,000 after buying an additional 406,700 shares in the last quarter. Horizon Kinetics Asset Management LLC purchased a new position in shares of Energy Recovery in the second quarter worth about $363,000. Teacher Retirement System of Texas boosted its position in Energy Recovery by 140.5% during the second quarter. Teacher Retirement System of Texas now owns 65,105 shares of the industrial products company's stock worth $832,000 after acquiring an additional 38,031 shares during the last quarter. Versor Investments LP purchased a new stake in Energy Recovery during the 2nd quarter valued at about $243,000. Finally, Jupiter Asset Management Ltd. purchased a new stake in Energy Recovery during the 2nd quarter valued at about $2,381,000. Institutional investors and hedge funds own 83.58% of the company's stock.

Energy Recovery Stock Up 0.1%

NASDAQ ERII opened at $10.73 on Friday. The business has a 50-day moving average price of $14.26 and a 200-day moving average price of $14.76. The firm has a market cap of $566.87 million, a price-to-earnings ratio of 24.95 and a beta of 1.10. Energy Recovery has a twelve month low of $9.59 and a twelve month high of $18.32.

Energy Recovery (NASDAQ:ERII - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The industrial products company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.14). Energy Recovery had a net margin of 17.01% and a return on equity of 11.92%. The company had revenue of $66.59 million during the quarter, compared to the consensus estimate of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. Research analysts expect that Energy Recovery will post 0.36 EPS for the current fiscal year.

About Energy Recovery

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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