Energy Recovery, Inc. (NASDAQ:ERII) Short Interest Update

Key Points

• Short interest jumped 35.8% in March to 2,122,090 shares (about 4.1% of shares sold short), resulting in a short‑interest ratio of 2.4 days based on average volume.
• Energy Recovery missed quarterly estimates, reporting EPS of $0.53 versus a $0.67 consensus and revenue of $66.59M versus $82.59M, and set FY2026 guidance of $0.50–$0.70 while analysts forecast roughly $0.36 for the current year.
• Insiders sold a total of 248,811 shares (~$2.6M) in the last quarter — including a director sale of 165,292 shares — while institutional investors hold about 83.6% of the company.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) was the target of a significant growth in short interest during the month of March. As of March 31st, there was short interest totaling 2,122,090 shares, a growth of 35.8% from the March 15th total of 1,562,859 shares. Currently, 4.1% of the shares of the company are sold short. Based on an average trading volume of 888,188 shares, the short-interest ratio is currently 2.4 days.

Energy Recovery Stock Performance

Shares of ERII stock traded down $0.67 during midday trading on Wednesday, reaching $10.62. 929,376 shares of the company were exchanged, compared to its average volume of 638,356. The company's 50 day moving average price is $12.00 and its two-hundred day moving average price is $13.91. The company has a market cap of $561.05 million, a P/E ratio of 24.70 and a beta of 1.08. Energy Recovery has a 12 month low of $9.35 and a 12 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 EPS for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. As a group, sell-side analysts predict that Energy Recovery will post 0.36 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on ERII. Weiss Ratings reiterated a "hold (c-)" rating on shares of Energy Recovery in a research report on Monday, December 29th. Loop Capital set a $13.00 price objective on shares of Energy Recovery in a research report on Monday, March 2nd. Finally, Northcoast Research downgraded shares of Energy Recovery from a "buy" rating to a "neutral" rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $15.00.

Insider Buying and Selling

In related news, Director Arve Hanstveit sold 165,292 shares of Energy Recovery stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $10.14, for a total value of $1,676,060.88. Following the sale, the director directly owned 384,928 shares in the company, valued at $3,903,169.92. This trade represents a 30.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Rodney Clemente sold 20,568 shares of Energy Recovery stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $10.61, for a total transaction of $218,226.48. Following the completion of the sale, the senior vice president owned 116,008 shares in the company, valued at approximately $1,230,844.88. This represents a 15.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 248,811 shares of company stock valued at $2,606,175 in the last quarter. Company insiders own 3.20% of the company's stock.

Institutional Trading of Energy Recovery

Several institutional investors have recently modified their holdings of ERII. Wexford Capital LP bought a new position in Energy Recovery during the third quarter valued at about $27,000. Hantz Financial Services Inc. raised its position in Energy Recovery by 2,581.9% in the third quarter. Hantz Financial Services Inc. now owns 1,931 shares of the industrial products company's stock worth $30,000 after acquiring an additional 1,859 shares in the last quarter. Parallel Advisors LLC acquired a new stake in Energy Recovery in the 4th quarter valued at about $38,000. State of Alaska Department of Revenue acquired a new stake in Energy Recovery in the 3rd quarter valued at about $46,000. Finally, Comerica Bank boosted its position in shares of Energy Recovery by 150.5% during the 4th quarter. Comerica Bank now owns 3,868 shares of the industrial products company's stock valued at $52,000 after purchasing an additional 2,324 shares in the last quarter. Institutional investors and hedge funds own 83.58% of the company's stock.

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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