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

Key Points

• Energy Recovery shares rose 6.6% and moved above their 50-day moving average, trading as high as $7.20 and last at $7.15; the 50-day average was $7.02.
• The company missed quarterly expectations, reporting a loss of $0.10 per share versus the expected $0.06 loss, and revenue of $11.2 million versus forecasts of $16.16 million.
• Recent analyst actions skew negative: the consensus rating is “Reduce,” with three analysts at Hold and two at Sell. The average price target is $11.67.

Energy Recovery, Inc. (NASDAQ:ERII - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $7.02 and traded as high as $7.20. Energy Recovery shares last traded at $7.15, with a volume of 1,255,291 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Energy Recovery from a "sell" rating to a "strong sell" rating in a research report on Saturday. Weiss Ratings downgraded Energy Recovery from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, September 16th. B. Riley Financial reduced their price target on shares of Energy Recovery from $10.00 to $8.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Zacks Research downgraded shares of Energy Recovery from a "hold" rating to a "strong sell" rating in a report on Wednesday. Finally, Seaport Research Partners cut shares of Energy Recovery from a "buy" rating to a "neutral" rating in a research report on Monday, September 14th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $11.67.

Energy Recovery Trading Up 6.6%

The stock's fifty day simple moving average is $7.02 and its 200-day simple moving average is $9.45. The stock has a market capitalization of $368.51 million, a PE ratio of 79.44 and a beta of 0.89.

Energy Recovery (NASDAQ:ERII - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The industrial products company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.04). The firm had revenue of $11.20 million for the quarter, compared to analysts' expectations of $16.16 million. Energy Recovery had a net margin of 12.72% and a return on equity of 8.25%. As a group, analysts anticipate that Energy Recovery, Inc. will post -0.17 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Energy Recovery

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Energy Recovery in the 2nd quarter worth about $57,225,000. Legal & General Group Plc acquired a new position in shares of Energy Recovery in the second quarter worth $18,579,000. Amundi grew its holdings in Energy Recovery by 31.2% during the first quarter. Amundi now owns 3,740,309 shares of the industrial products company's stock worth $37,648,000 after acquiring an additional 888,618 shares during the period. Kopion Asset Management LLC grew its stake in Energy Recovery by 59.2% during the third quarter. Kopion Asset Management LLC now owns 1,018,133 shares of the industrial products company's stock worth $6,791,000 after buying an additional 378,588 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Energy Recovery by 47.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 514,102 shares of the industrial products company's stock valued at $5,177,000 after buying an additional 165,915 shares during the period. 83.58% of the stock is owned by institutional investors.

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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