Energy Recovery (NASDAQ:ERII) Reaches New 1-Year Low - Should You Sell?

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report)'s stock price reached a new 52-week low on Friday . The stock traded as low as $10.86 and last traded at $12.29, with a volume of 2527688 shares traded. The stock had previously closed at $15.04.

Wall Street Analysts Forecast Growth

A number of research firms have commented on ERII. B. Riley downgraded shares of Energy Recovery from a "buy" rating to a "neutral" rating and cut their price objective for the company from $20.00 to $12.50 in a report on Thursday. StockNews.com downgraded Energy Recovery from a "buy" rating to a "hold" rating in a research report on Thursday. Three investment analysts have rated the stock with a hold rating, two have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, Energy Recovery has an average rating of "Moderate Buy" and a consensus price target of $18.88.

Energy Recovery Price Performance

The business has a 50 day simple moving average of $15.35 and a 200 day simple moving average of $15.61. The company has a market capitalization of $670.21 million, a price-to-earnings ratio of 36.00 and a beta of 1.09.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The industrial products company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.03 by ($0.16). Energy Recovery had a return on equity of 8.90% and a net margin of 14.35%. The business had revenue of $8.07 million for the quarter, compared to analyst estimates of $21.97 million. During the same period in the prior year, the company posted ($0.08) EPS. The firm's revenue for the quarter was down 33.1% compared to the same quarter last year. On average, equities research analysts predict that Energy Recovery, Inc. will post 0.36 EPS for the current year.

Insider Activity

In related news, Director Arve Hanstveit sold 50,000 shares of the business's stock in a transaction on Tuesday, March 11th. The shares were sold at an average price of $16.34, for a total transaction of $817,000.00. Following the completion of the transaction, the director now owns 693,182 shares in the company, valued at approximately $11,326,593.88. The trade was a 6.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Rodney Clemente sold 21,444 shares of the business's stock in a transaction that occurred on Thursday, February 20th. The stock was sold at an average price of $15.42, for a total value of $330,666.48. Following the sale, the senior vice president now owns 111,109 shares of the company's stock, valued at approximately $1,713,300.78. The trade was a 16.18% decrease in their position. The disclosure for this sale can be found here. Company insiders own 4.10% of the company's stock.

Institutional Investors Weigh In On Energy Recovery

A number of institutional investors and hedge funds have recently made changes to their positions in ERII. Nuveen LLC acquired a new position in shares of Energy Recovery in the first quarter valued at approximately $3,802,000. Vanguard Group Inc. grew its position in Energy Recovery by 7.5% in the 1st quarter. Vanguard Group Inc. now owns 3,494,872 shares of the industrial products company's stock valued at $55,534,000 after buying an additional 242,494 shares during the last quarter. Cary Street Partners Financial LLC acquired a new position in Energy Recovery in the 1st quarter valued at $540,000. Raiffeisen Bank International AG increased its stake in Energy Recovery by 4.3% in the 1st quarter. Raiffeisen Bank International AG now owns 245,000 shares of the industrial products company's stock valued at $3,908,000 after buying an additional 10,000 shares during the period. Finally, XTX Topco Ltd acquired a new stake in shares of Energy Recovery in the 1st quarter worth $374,000. 83.58% of the stock is owned by hedge funds and other institutional investors.

About Energy Recovery

Energy Recovery, Inc, together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the Americas, the Middle East, Africa, Asia, and Europe. The company operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation booster pumps for use in seawater and brackish desalination, and wastewater treatment.