Energy Recovery (NASDAQ:ERII) Reaches New 1-Year Low – Should You Sell?

Shares of Energy Recovery, Inc. (NASDAQ:ERII) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $9.30 and last traded at $9.43, with a volume of 3620534 shares trading hands. The stock had previously closed at $11.61.

Energy Recovery News Summary

Here are the key news stories impacting Energy Recovery this week:

• Positive Sentiment: Q1 sales beat analyst estimates, signaling demand resilience and supporting near?term top?line expectations. Energy Recovery’s (NASDAQ:ERII) Q1 CY2026 Sales Top Estimates
• Positive Sentiment: Management highlighted a new product launch that could expand addressable markets and support revenue growth over time. ERII Q1 deep dive: New product launch and Middle East conflict shape outlook
• Positive Sentiment: Industry research points to multi?year growth in ventilation/energy recovery markets, which supports ERII’s long?term opportunity. Energy Recovery Ventilation System Market Growth, Demand Analysis & Forecast 2026–2035
• Neutral Sentiment: Company released its Q1 earnings press release, shareholder letter and hosted a conference call; transcripts are available for investors to assess management’s detail on guidance and execution. Energy Recovery Reports its First Quarter 2026 Financial Results and Organizational Updates
• Neutral Sentiment: Full earnings call transcripts provide color on backlog, margins and execution; useful for discerning whether recent revenue beats translate into sustained improvement. Energy Recovery, Inc. (ERII) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Reported EPS missed estimates (a small loss of $0.11 vs. consensus of -$0.10), which, despite the revenue beat, raised near?term profitability concerns and likely triggered short?term selling. Energy Recovery (ERII) Reports Q1 Loss, Tops Revenue Estimates
• Negative Sentiment: Management cited the Middle East conflict as a factor creating order?timing uncertainty and potential near?term demand disruption, adding risk to the outlook. ERII Q1 deep dive: New product launch and Middle East conflict shape outlook

Analyst Upgrades and Downgrades

ERII has been the subject of a number of research analyst reports. Northcoast Research lowered shares of Energy Recovery from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 15th. Loop Capital set a $13.00 target price on shares of Energy Recovery in a research note on Monday, March 2nd. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Energy Recovery in a research note on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $15.00.

Energy Recovery Stock Performance

The firm’s 50-day simple moving average is $10.62 and its 200 day simple moving average is $13.40. The stock has a market capitalization of $490.38 million, a P/E ratio of 24.82 and a beta of 1.04.

Energy Recovery (NASDAQ:ERII) last issued its quarterly earnings results on Wednesday, May 6th. The industrial products company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.01). Energy Recovery had a return on equity of 10.80% and a net margin of 15.07%.The business had revenue of $9.71 million for the quarter, compared to the consensus estimate of $8.37 million. As a group, research analysts expect that Energy Recovery, Inc. will post 0.42 earnings per share for the current fiscal year.

Insider Activity

In other Energy Recovery news, Director Arve Hanstveit sold 165,292 shares of the business’s stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $10.14, for a total transaction of $1,676,060.88. Following the sale, the director directly owned 384,928 shares of the company’s stock, valued at $3,903,169.92. The trade was a 30.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Rodney Clemente sold 20,568 shares of the business’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $10.61, for a total transaction of $218,226.48. Following the sale, the senior vice president directly owned 116,008 shares in the company, valued at $1,230,844.88. This trade represents a 15.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 238,551 shares of company stock worth $2,456,512 over the last three months. Insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Energy Recovery

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. S&CO Inc. lifted its position in Energy Recovery by 8.3% during the 1st quarter. S&CO Inc. now owns 13,000 shares of the industrial products company’s stock worth $130,000 after buying an additional 1,000 shares in the last quarter. Principal Financial Group Inc. raised its holdings in shares of Energy Recovery by 9.0% in the 1st quarter. Principal Financial Group Inc. now owns 68,682 shares of the industrial products company’s stock valued at $692,000 after purchasing an additional 5,644 shares during the period. Hsbc Holdings PLC raised its holdings in shares of Energy Recovery by 70.3% in the 1st quarter. Hsbc Holdings PLC now owns 110,812 shares of the industrial products company’s stock valued at $1,102,000 after purchasing an additional 45,756 shares during the period. Isthmus Partners LLC raised its holdings in shares of Energy Recovery by 38.0% in the 1st quarter. Isthmus Partners LLC now owns 153,262 shares of the industrial products company’s stock valued at $1,543,000 after purchasing an additional 42,208 shares during the period. Finally, Inspire Investing LLC raised its holdings in shares of Energy Recovery by 47.2% in the 1st quarter. Inspire Investing LLC now owns 52,030 shares of the industrial products company’s stock valued at $524,000 after purchasing an additional 16,691 shares during the period. 83.58% of the stock is owned by institutional investors.

Energy Recovery Company Profile

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.