Energy Recovery (NASDAQ:ERII) Downgraded to Hold at Zacks Investment Research

Last updated on Thursday, June 17, 2021 | 2021 MarketBeat

Energy Recovery (NASDAQ:ERII) was downgraded by Zacks Investment Research from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday, Zacks.com reports.

According to Zacks, "Based in San Leandro, California, ENERGY RECOVERY, INC. is a leading global developer and manufacturer of highly efficient energy recovery devices utilized in the water desalination industry. Energy Recovery, Inc. operates primarily in the sea water reverse osmosis segment of the desalination industry.ERI manufactures ultra-high efficiency recovery products and technology, specifically the ERI PX Pressure Exchanger, that are among the enabling technologies driving the rapid growth in seawater reverse osmosis desalination, and are helping to make desalination affordable worldwide. "

Separately, Raymond James increased their target price on shares of Energy Recovery from $21.00 to $23.00 and gave the company an "outperform" rating in a research report on Friday, May 7th. Two equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. Energy Recovery presently has an average rating of "Buy" and an average target price of $18.50.

Shares of NASDAQ ERII traded down $0.56 during mid-day trading on Thursday, reaching $20.70. The company's stock had a trading volume of 481,158 shares, compared to its average volume of 454,345. The business has a 50-day simple moving average of $19.45. The firm has a market cap of $1.18 billion, a PE ratio of 35.69 and a beta of 1.26. Energy Recovery has a 1-year low of $6.69 and a 1-year high of $22.42.

Energy Recovery (NASDAQ:ERII) last issued its earnings results on Thursday, May 6th. The industrial products company reported $0.12 EPS for the quarter, beating the Zacks' consensus estimate of $0.08 by $0.04. The business had revenue of $28.94 million during the quarter, compared to analysts' expectations of $30.00 million. Energy Recovery had a net margin of 25.82% and a return on equity of 20.30%. On average, research analysts anticipate that Energy Recovery will post 0.2 EPS for the current fiscal year.

In related news, major shareholder As Arvarius sold 1,000,000 shares of the firm's stock in a transaction dated Thursday, May 6th. The shares were sold at an average price of $19.50, for a total transaction of $19,500,000.00. Following the completion of the sale, the insider now directly owns 6,532,490 shares in the company, valued at $127,383,555. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Arve Hanstveit sold 9,426 shares of the firm's stock in a transaction dated Monday, April 26th. The stock was sold at an average price of $22.00, for a total transaction of $207,372.00. Following the sale, the director now owns 940,307 shares of the company's stock, valued at $20,686,754. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 1,023,800 shares of company stock valued at $20,025,900. 17.40% of the stock is owned by company insiders.

A number of hedge funds have recently made changes to their positions in the business. Monarch Partners Asset Management LLC boosted its stake in Energy Recovery by 1.0% during the first quarter. Monarch Partners Asset Management LLC now owns 79,719 shares of the industrial products company's stock worth $1,462,000 after buying an additional 795 shares during the period. LPL Financial LLC boosted its stake in Energy Recovery by 4.0% during the fourth quarter. LPL Financial LLC now owns 26,241 shares of the industrial products company's stock worth $358,000 after buying an additional 1,000 shares during the period. The Manufacturers Life Insurance Company boosted its stake in Energy Recovery by 5.6% during the fourth quarter. The Manufacturers Life Insurance Company now owns 24,904 shares of the industrial products company's stock worth $340,000 after buying an additional 1,315 shares during the period. Pinnacle Associates Ltd. boosted its stake in Energy Recovery by 9.7% during the first quarter. Pinnacle Associates Ltd. now owns 15,850 shares of the industrial products company's stock worth $291,000 after buying an additional 1,400 shares during the period. Finally, Swiss National Bank boosted its stake in Energy Recovery by 1.7% during the first quarter. Swiss National Bank now owns 89,800 shares of the industrial products company's stock worth $1,647,000 after buying an additional 1,500 shares during the period. 46.61% of the stock is owned by institutional investors.

About Energy Recovery

Energy Recovery, Inc, together with its subsidiaries, designs, manufactures, and sells various solutions for industrial fluid-flow markets worldwide. The company operates through Water, and Oil & Gas segments. It designs, engineers, manufactures, and supplies various energy recovery devices (ERDs), including positive displacement isobaric ERDs and centrifugal-type ERDs, such as our hydraulic turbochargers; and high-pressure feed and circulation pumps.

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