Energy Recovery (NASDAQ:ERII) Sets New 12-Month Low - Here's What Happened

Key Points

• 52-week low: Energy Recovery shares fell to a new 52-week low of $9.59 (last traded $9.68) on Friday with about 61,354 shares changing hands, well below the 50‑day ($13.55) and 200‑day ($14.48) moving averages.
• Earnings miss and guidance: The company reported Q results that missed expectations (EPS $0.53 vs. $0.67 estimate; revenue $66.6M vs. $82.6M) but set FY2026 guidance of $0.50–$0.70 EPS; analysts’ consensus is a "Moderate Buy" with an average price target of $15.00.
• Insider selling and institutional ownership: Insiders sold 81,100 shares (~$905,222) over the last quarter (notable sales by William Yeung and director Arve Hanstveit); insiders hold 3.20% while institutional investors own 83.58% of the stock.

Shares of Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report) hit a new 52-week low on Friday . The company traded as low as $9.59 and last traded at $9.6810, with a volume of 61354 shares changing hands. The stock had previously closed at $9.73.

Analysts Set New Price Targets

ERII has been the subject of a number of research analyst reports. Weiss Ratings reissued a "hold (c-)" rating on shares of Energy Recovery in a report on Monday, December 29th. Loop Capital set a $13.00 price objective on Energy Recovery in a research note on Monday, March 2nd. Finally, Northcoast Research started coverage on Energy Recovery in a research report on Friday, March 6th. They issued a "buy" rating and a $14.00 target price on the stock. 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 presently has an average rating of "Moderate Buy" and an average price target of $15.00.

Energy Recovery Stock Performance

The company has a market cap of $508.22 million, a price-to-earnings ratio of 22.40 and a beta of 1.10. The company has a fifty day moving average of $13.55 and a two-hundred day moving average of $14.48.

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

Insider Activity

In other news, insider William Yeung sold 7,271 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the insider owned 90,098 shares of the company's stock, valued at $1,310,925.90. This represents a 7.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Arve Hanstveit sold 38,418 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $10.71, for a total transaction of $411,456.78. Following the completion of the transaction, the director owned 586,802 shares of the company's stock, valued at approximately $6,284,649.42. This trade represents a 6.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 81,100 shares of company stock valued at $905,222 over the last quarter. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Energy Recovery

A number of hedge funds have recently modified their holdings of ERII. Royal Bank of Canada increased its holdings in Energy Recovery by 43.1% in the first 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 Energy Recovery during the 1st quarter worth about $341,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Energy Recovery by 7.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,929 shares of the industrial products company's stock worth $714,000 after buying an additional 3,185 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position 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 buying an additional 19,992 shares during the last quarter. Finally, Jane Street Group LLC increased its stake in shares of Energy Recovery by 54.4% in the first quarter. Jane Street Group LLC now owns 122,369 shares of the industrial products company's stock valued at $1,944,000 after buying an additional 43,089 shares during the period. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.