Energy Recovery (NASDAQ:ERII) Coverage Initiated at Northcoast Research

Key Points

• Northcoast Research initiated coverage of Energy Recovery with a Buy rating and a $14 price target (about 30% upside), while MarketBeat's consensus is a Moderate Buy with an average target of $15.
• Energy Recovery's latest quarter missed expectations—EPS $0.53 vs. $0.67 expected and revenue $66.59M vs. $82.59M expected—and the company set FY2026 guidance of $0.50–$0.70 EPS.
• Insiders have been selling (notably William Yeung sold 7,271 shares); insiders own 3.2% of the stock while institutional investors hold roughly 83.6%.

Stock analysts at Northcoast Research initiated coverage on shares of Energy Recovery (NASDAQ:ERII - Get Free Report) in a research report issued on Friday. The brokerage set a "buy" rating and a $14.00 price target on the industrial products company's stock. Northcoast Research's price objective would indicate a potential upside of 30.23% from the stock's current price.

Several other equities research analysts also recently commented on the stock. B. Riley Financial reaffirmed a "neutral" rating on shares of Energy Recovery in a report on Thursday, November 6th. Loop Capital set a $13.00 price target on shares of Energy Recovery in a research note on Monday. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Energy Recovery in a report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $15.00.

Energy Recovery Stock Up 0.2%

Shares of ERII stock opened at $10.75 on Friday. Energy Recovery has a 52 week low of $9.59 and a 52 week high of $18.32. The company has a market cap of $567.92 million, a price-to-earnings ratio of 25.00 and a beta of 1.10. The firm has a 50 day moving average of $14.26 and a 200-day moving average of $14.76.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its earnings results 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 firm 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. Analysts anticipate that Energy Recovery will post 0.36 earnings per share for the current year.

Insider Buying and Selling at Energy Recovery

In other news, insider William Yeung sold 7,271 shares of the firm's stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $14.55, for a total value of $105,793.05. Following the transaction, the insider directly owned 90,098 shares in the company, valued at $1,310,925.90. This trade represents a 7.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Over the last quarter, insiders sold 10,260 shares of company stock worth $149,663. 3.20% of the stock is owned by corporate insiders.

Institutional Trading of Energy Recovery

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