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

Key Points

• Energy Recovery currently has a consensus analyst rating of "Hold", based on five brokerages covering the stock. The average 12-month price target is $15.00.
• The company’s latest earnings report showed a loss of $0.23 per share, which was worse than estimates, though revenue of $9.71 million came in above expectations.
• Recent insider activity was mixed: one director sold a large block of shares, while another director bought 20,000 shares. Institutional ownership remains high at 83.58%.

Shares of Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) have been assigned a consensus recommendation of "Hold" from the five brokerages that are presently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $15.00.

A number of equities analysts recently issued reports on ERII shares. Freedom Capital cut Energy Recovery from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Loop Capital set a $13.00 target price on shares of Energy Recovery in a report on Monday, March 2nd. Seaport Research Partners reiterated a "buy" rating and issued a $12.00 target price on shares of Energy Recovery in a report on Wednesday, May 13th. Northcoast Research cut shares of Energy Recovery from a "buy" rating to a "neutral" rating in a report on Wednesday, April 15th. Finally, Weiss Ratings cut shares of Energy Recovery from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 11th.

Energy Recovery Price Performance

NASDAQ ERII opened at $8.45 on Wednesday. The company's 50 day simple moving average is $10.22 and its 200 day simple moving average is $12.91. Energy Recovery has a 12 month low of $8.14 and a 12 month high of $18.32. The company has a market capitalization of $435.51 million, a P/E ratio of 22.24 and a beta of 1.04.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its earnings results on Wednesday, May 6th. The industrial products company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.13). The company had revenue of $9.71 million during the quarter, compared to analyst estimates of $8.37 million. Energy Recovery had a return on equity of 10.89% and a net margin of 15.07%. On average, analysts anticipate that Energy Recovery will post 0.42 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Arve Hanstveit sold 165,292 shares of the stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $10.14, for a total value of $1,676,060.88. Following the completion of the sale, the director owned 384,928 shares in the company, valued at $3,903,169.92. This represents a 30.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Pamela L. Tondreau bought 20,000 shares of Energy Recovery stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average price of $8.34 per share, with a total value of $166,800.00. Following the acquisition, the director directly owned 37,362 shares of the company's stock, valued at approximately $311,599.08. This represents a 115.19% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 238,551 shares of company stock worth $2,456,512 over the last ninety days. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of Energy Recovery

Hedge funds have recently modified their holdings of the business. Royal Bank of Canada increased its holdings in shares of Energy Recovery by 43.1% in the 1st quarter. Royal Bank of Canada now owns 16,257 shares of the industrial products company's stock valued at $258,000 after purchasing an additional 4,899 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in shares of Energy Recovery in the 1st quarter valued at about $341,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased 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 during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased 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 during the period. Finally, Jane Street Group LLC increased its holdings 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 period. Hedge funds and other institutional investors own 83.58% of the company's stock.

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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