BlackRock Inc. Acquires Shares of 6,344,252 Energy Recovery, Inc. $ERII

Key Points

• BlackRock acquired 6.34 million shares of Energy Recovery during the second quarter, worth approximately $57.2 million and representing about 12.31% of the company. Institutional investors collectively own 83.58% of ERII.
• Analyst sentiment is mixed but centered on a “Hold” consensus, with an average price target of $13.50. Ratings range from Buy to Sell, while several analysts recently reduced their price targets or downgraded the stock.
• Energy Recovery missed quarterly expectations, reporting a loss of $0.03 per share versus the projected $0.02 loss and revenue of $12.0 million versus the $18.36 million estimate. Shares opened at $7.71, near their one-year low of $7.51.

BlackRock Inc. purchased a new stake in Energy Recovery, Inc. (NASDAQ:ERII - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 6,344,252 shares of the industrial products company's stock, valued at approximately $57,225,000. BlackRock Inc. owned approximately 12.31% of Energy Recovery as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of ERII. Wexford Capital LP bought a new position in Energy Recovery during the 3rd quarter worth $27,000. Parallel Advisors LLC acquired a new position in Energy Recovery in the 4th quarter valued at $38,000. Group One Trading LLC bought a new stake in shares of Energy Recovery during the 1st quarter valued at $41,000. Comerica Bank lifted 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 acquiring an additional 2,324 shares during the period. Finally, Tower Research Capital LLC TRC increased its position in shares of Energy Recovery by 172.2% in the second quarter. Tower Research Capital LLC TRC now owns 6,011 shares of the industrial products company's stock worth $77,000 after purchasing an additional 3,803 shares during the period. 83.58% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on ERII shares. Seaport Research Partners restated a "buy" rating and issued a $12.00 target price on shares of Energy Recovery in a research report on Wednesday, May 13th. Wall Street Zen lowered shares of Energy Recovery from a "hold" rating to a "sell" rating in a research report on Saturday, May 16th. B. Riley Financial decreased their price objective on shares of Energy Recovery from $10.00 to $8.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings cut Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, August 19th. Finally, Freedom Capital downgraded Energy Recovery from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $13.50.

Insiders Place Their Bets

In other Energy Recovery news, Director Colin R. Sabol acquired 11,180 shares of Energy Recovery stock in a transaction dated Monday, June 15th. The stock was purchased at an average cost of $8.88 per share, for a total transaction of $99,278.40. Following the completion of the acquisition, the director directly owned 55,671 shares of the company's stock, valued at $494,358.48. This represents a 25.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Rodney Clemente sold 5,387 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $8.56, for a total transaction of $46,112.72. Following the completion of the sale, the senior vice president owned 108,301 shares in the company, valued at $927,056.56. This represents a 4.74% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.50% of the stock is currently owned by company insiders.

Energy Recovery Price Performance

Shares of ERII opened at $7.71 on Tuesday. The stock has a 50-day moving average of $8.44 and a 200-day moving average of $9.75. The company has a market cap of $397.41 million, a PE ratio of 27.54 and a beta of 0.91. Energy Recovery, Inc. has a one year low of $7.51 and a one year high of $18.32.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its earnings results on Wednesday, August 5th. The industrial products company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). The firm had revenue of $12.00 million during the quarter, compared to the consensus estimate of $18.36 million. Energy Recovery had a return on equity of 8.25% and a net margin of 12.72%. Analysts expect that Energy Recovery, Inc. will post -0.17 EPS for the current fiscal year.

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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