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

Key Points

• Moderate Buy consensus from five brokerages (2 hold, 2 buy, 1 strong buy) with an average 12‑month price target of about $15.00.
• Earnings miss: Q4 EPS was $0.53 vs. $0.67 expected and revenue was $66.6M vs. $82.6M expected, while the company set FY2026 guidance of $0.50–$0.70 EPS.
• Insider selling and ownership: Insiders sold 81,100 shares (~$905K) over the last quarter; insiders own 3.20% of the stock and institutions hold ~83.58%, with a market cap of about $518M and recent price near $9.81.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) has been given a consensus rating of "Moderate Buy" by the five brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $15.00.

Several brokerages have recently weighed in on ERII. Northcoast Research began coverage on shares of Energy Recovery in a research note on Friday, March 6th. They set a "buy" rating and a $14.00 price target on the stock. Weiss Ratings restated a "hold (c-)" rating on shares of Energy Recovery in a research note on Monday, December 29th. Finally, Loop Capital set a $13.00 target price on Energy Recovery in a research report on Monday, March 2nd.

Energy Recovery Stock Down 0.6%

NASDAQ ERII opened at $9.81 on Tuesday. The company has a 50-day moving average price of $12.94 and a 200-day moving average price of $14.26. Energy Recovery has a 52 week low of $9.35 and a 52 week high of $18.32. The firm has a market capitalization of $518.26 million, a P/E ratio of 22.81 and a beta of 1.10.

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 analysts' consensus estimates of $0.67 by ($0.14). Energy Recovery had a return on equity of 11.92% and a net margin of 17.01%.The business had revenue of $66.59 million during the quarter, compared to analysts' expectations of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. As a group, equities research analysts anticipate that Energy Recovery will post 0.36 EPS for the current year.

Insider Transactions at Energy Recovery

In related news, SVP Rodney Clemente sold 20,568 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $10.61, for a total value of $218,226.48. Following the completion of the sale, the senior vice president directly owned 116,008 shares of the company's stock, valued at approximately $1,230,844.88. This represents a 15.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider William Yeung sold 7,271 shares of Energy Recovery stock in a transaction that occurred 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 transaction, the insider directly owned 90,098 shares in the company, valued at $1,310,925.90. This represents a 7.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 81,100 shares of company stock valued at $905,222 over the last quarter. 3.20% of the stock is currently owned by company insiders.

Institutional Trading of Energy Recovery

Several institutional investors and hedge funds have recently modified their holdings of ERII. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Energy Recovery by 4.6% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 13,984 shares of the industrial products company's stock valued at $218,000 after acquiring an additional 613 shares during the last quarter. Skandinaviska Enskilda Banken AB publ grew its position in Energy Recovery by 2.6% in the third quarter. Skandinaviska Enskilda Banken AB publ now owns 36,649 shares of the industrial products company's stock worth $559,000 after acquiring an additional 914 shares in the last quarter. S&CO Inc. increased its stake in Energy Recovery by 9.1% during the third quarter. S&CO Inc. now owns 12,000 shares of the industrial products company's stock worth $185,000 after acquiring an additional 1,000 shares during the last quarter. Aviva PLC raised its position in Energy Recovery by 4.9% during the fourth quarter. Aviva PLC now owns 33,974 shares of the industrial products company's stock valued at $458,000 after purchasing an additional 1,599 shares during the period. Finally, Wexford Capital LP purchased a new stake in Energy Recovery during the third quarter valued at approximately $27,000. 83.58% of the stock is currently owned by institutional investors.

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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