Energy Recovery (NASDAQ:ERII) Reaches New 1-Year Low Following Weak Earnings

Energy Recovery, Inc. (NASDAQ:ERII)’s share price hit a new 52-week low on Thursday following a dissappointing earnings announcement. The company traded as low as $10.70 and last traded at $10.96, with a volume of 675678 shares trading hands. The stock had previously closed at $16.12.

The industrial products company reported $0.53 earnings per share for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.14). The company had revenue of $66.59 million during the quarter, compared to analyst estimates of $82.59 million. Energy Recovery had a net margin of 14.44% and a return on equity of 10.09%. Energy Recovery has set its FY 2026 guidance at 0.500-0.700 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Energy Recovery in a research note on Monday, December 29th. Loop Capital set a $18.20 price target on shares of Energy Recovery in a report on Monday, November 10th. Finally, B. Riley Financial restated a “neutral” rating on shares of Energy Recovery in a research report on Thursday, November 6th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $17.07.

Insider Buying and Selling at Energy Recovery

In related news, Director Arve Hanstveit sold 15,000 shares of the business’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $14.97, for a total value of $224,550.00. Following the completion of the sale, the director directly owned 640,220 shares of the company’s stock, valued at $9,584,093.40. The trade was a 2.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider William Yeung sold 7,271 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $14.55, for a total value of $105,793.05. Following the transaction, the insider directly owned 90,098 shares in the company, valued at approximately $1,310,925.90. This trade represents a 7.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 25,260 shares of company stock valued at $374,213. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Energy Recovery

Institutional investors have recently modified their holdings of the company. Wexford Capital LP acquired a new stake in Energy Recovery in the 3rd quarter valued at $27,000. Hantz Financial Services Inc. lifted its stake in shares of Energy Recovery by 2,581.9% in the third 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 in the last quarter. Parallel Advisors LLC acquired a new position in shares of Energy Recovery during the fourth quarter valued at about $38,000. State of Alaska Department of Revenue acquired a new position in shares of Energy Recovery during the third quarter valued at about $46,000. Finally, Comerica Bank increased its position in shares of Energy Recovery by 150.5% during the fourth quarter. Comerica Bank now owns 3,868 shares of the industrial products company’s stock worth $52,000 after acquiring an additional 2,324 shares in the last quarter. 83.58% of the stock is owned by institutional investors and hedge funds.

Energy Recovery Stock Performance

The company has a market cap of $572.34 million, a price-to-earnings ratio of 31.80 and a beta of 1.09. The stock’s fifty day moving average is $14.68 and its two-hundred day moving average is $14.92.

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.