Energy Recovery (NASDAQ:ERII) Shares Break Above 50 Day Moving Average - What's Next?

Key Points

• Energy Recovery shares rose 2.4% and briefly moved above their 50-day moving average of $7.11, trading as high as $7.12. However, the stock remains below its 200-day moving average of $9.67.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, with three Hold ratings and one Sell rating. B. Riley lowered its price target to $8.00, while the consensus target stands at $11.67.
• The company missed quarterly expectations, reporting a $0.03-per-share loss versus an expected $0.02 loss and revenue of $12.0 million versus the $18.36 million estimate. Institutional investors own a substantial 83.58% of the stock.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report)'s stock price crossed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $7.11 and traded as high as $7.12. Energy Recovery shares last traded at $7.12, with a volume of 703,340 shares.

Analysts Set New Price Targets

Several research firms recently issued reports on ERII. Seaport Research Partners downgraded Energy Recovery from a "buy" rating to a "neutral" rating in a research note on Monday, September 14th. Weiss Ratings cut Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, September 16th. Finally, B. Riley Financial dropped their target price on Energy Recovery from $10.00 to $8.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $11.67.

Energy Recovery Trading Up 2.4%

The business has a 50-day moving average price of $7.11 and a two-hundred day moving average price of $9.67. The stock has a market capitalization of $366.96 million, a P/E ratio of 25.43 and a beta of 0.91.

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

Institutional Investors Weigh In On Energy Recovery

Hedge funds and other institutional investors have recently bought and sold shares of the company. Kopion Asset Management LLC grew its position in Energy Recovery by 59.2% in the 3rd quarter. Kopion Asset Management LLC now owns 1,018,133 shares of the industrial products company's stock valued at $6,791,000 after purchasing an additional 378,588 shares during the period. Bank of New York Mellon Corp acquired a new position in Energy Recovery during the second quarter worth $1,399,000. Amundi raised its holdings in Energy Recovery by 7.0% during the second quarter. Amundi now owns 4,003,535 shares of the industrial products company's stock worth $36,094,000 after buying an additional 263,226 shares during the last quarter. Legal & General Group Plc acquired a new position in Energy Recovery during the second quarter worth $18,579,000. Finally, Bank of America Corp DE bought a new position in shares of Energy Recovery in the second quarter valued at $1,049,000. Institutional investors own 83.58% of the company's stock.

About Energy Recovery

Energy Recovery, Inc develops and manufactures energy-efficiency technologies for industrial fluid-flow applications. The company is best known for its pressure exchanger systems, which capture hydraulic energy from high-pressure fluid streams and transfer it to lower-pressure incoming fluids. This process can reduce energy consumption and operating costs in demanding industrial environments.

Energy Recovery's products are used extensively in seawater and brackish-water reverse-osmosis desalination, where its PX Pressure Exchanger technology helps recover energy from the high-pressure reject stream.

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