Energy Recovery (NASDAQ:ERII) Trading Down 13% Following Weak Earnings

Energy Recovery, Inc. (NASDAQ:ERII)’s share price traded down 13% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.03 and last traded at $10.0970. 277,162 shares traded hands during trading, a decline of 59% from the average session volume of 684,021 shares. The stock had previously closed at $11.61.

The industrial products company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.13). The company had revenue of $9.71 million for the quarter, compared to analysts’ expectations of $8.37 million. Energy Recovery had a net margin of 15.07% and a return on equity of 10.89%.

Wall Street Analysts Forecast Growth

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

Insider Activity

In other news, SVP Rodney Clemente sold 20,568 shares of Energy Recovery stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $10.61, for a total value of $218,226.48. Following the completion of the transaction, the senior vice president owned 116,008 shares in the company, valued at approximately $1,230,844.88. This trade represents a 15.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Arve Hanstveit sold 165,292 shares of Energy Recovery stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $10.14, for a total value of $1,676,060.88. Following the completion of the transaction, the director 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 SEC filing for this sale provides additional information. Insiders sold a total of 238,551 shares of company stock valued at $2,456,512 in the last quarter. Company insiders own 3.20% of the company’s stock.

Institutional Trading of Energy Recovery

Several institutional investors and hedge funds have recently made changes to their positions in ERII. Wexford Capital LP purchased a new stake in shares of Energy Recovery in the third quarter valued at $27,000. Hantz Financial Services Inc. lifted its holdings in 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 worth $30,000 after buying an additional 1,859 shares during the last quarter. Parallel Advisors LLC bought a new position in Energy Recovery during the 4th quarter worth approximately $38,000. State of Alaska Department of Revenue acquired a new stake in Energy Recovery in the 3rd quarter valued at approximately $46,000. Finally, Comerica Bank increased its position in Energy Recovery by 150.5% in 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 during the period. 83.58% of the stock is currently owned by hedge funds and other institutional investors.

Energy Recovery Trading Down 3.2%

The stock has a market capitalization of $470.56 million, a price-to-earnings ratio of 24.03 and a beta of 1.04. The firm has a 50-day moving average of $10.62 and a 200 day moving average of $13.40.

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.