Short Interest in Energy Recovery, Inc. (NASDAQ:ERII) Increases By 35.8%

Energy Recovery, Inc. (NASDAQ:ERII) was the target of a large growth in short interest in March. As of March 31st, there was short interest totaling 2,122,090 shares, a growth of 35.8% from the March 15th total of 1,562,859 shares. Based on an average daily volume of 888,188 shares, the days-to-cover ratio is currently 2.4 days. Currently, 4.1% of the shares of the stock are short sold.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Energy Recovery in a report on Monday, December 29th. Loop Capital set a $13.00 target price on shares of Energy Recovery in a report on Monday, March 2nd. Finally, Northcoast Research downgraded shares of Energy Recovery from a “buy” rating to a “neutral” rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $15.00.

Energy Recovery Stock Down 5.9%

Shares of Energy Recovery stock traded down $0.67 during midday trading on Wednesday, hitting $10.62. The company’s stock had a trading volume of 929,376 shares, compared to its average volume of 638,356. Energy Recovery has a 1-year low of $9.35 and a 1-year high of $18.32. The firm has a market capitalization of $561.05 million, a P/E ratio of 24.70 and a beta of 1.08. The stock has a 50-day simple moving average of $12.00 and a 200-day simple moving average of $13.91.

Energy Recovery (NASDAQ:ERII) last announced its quarterly earnings data on Wednesday, February 25th. The industrial products company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.14). Energy Recovery had a return on equity of 11.92% and a net margin of 17.01%.The business had revenue of $66.59 million during the quarter, compared to analysts’ expectations of $82.59 million. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS. As a group, sell-side analysts predict that Energy Recovery will post 0.36 earnings per share for the current year.

Insider Buying and Selling

In related news, insider William Yeung sold 7,271 shares of the business’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $14.55, for a total value of $105,793.05. Following the sale, the insider directly owned 90,098 shares in the company, valued at $1,310,925.90. The trade was a 7.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Rodney Clemente sold 20,568 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $10.61, for a total transaction of $218,226.48. Following the completion of the sale, the senior vice president owned 116,008 shares in the company, valued at $1,230,844.88. The trade was a 15.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 248,811 shares of company stock worth $2,606,175 in the last ninety days. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wexford Capital LP acquired a new position in Energy Recovery in the 3rd quarter valued at approximately $27,000. Hantz Financial Services Inc. boosted its stake in shares of Energy Recovery by 2,581.9% during the 3rd quarter. Hantz Financial Services Inc. now owns 1,931 shares of the industrial products company’s stock valued at $30,000 after buying an additional 1,859 shares during the period. Parallel Advisors LLC acquired a new stake in shares of Energy Recovery during the 4th quarter valued at $38,000. State of Alaska Department of Revenue purchased a new position in shares of Energy Recovery during the 3rd quarter valued at $46,000. Finally, Comerica Bank grew its holdings 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 in the last quarter. 83.58% of the stock is owned by hedge funds and other institutional investors.

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.