Energy Recovery (NASDAQ:ERII) Sets New 52-Week Low After Earnings Miss

Energy Recovery, Inc. (NASDAQ:ERII) reached a new 52-week low during trading 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 traded. The stock had previously closed at $16.12.

The industrial products company reported $0.53 EPS for the quarter, missing the consensus estimate of $0.67 by ($0.14). Energy Recovery had a return on equity of 10.09% and a net margin of 14.44%.The company 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.

Wall Street Analyst Weigh In

ERII has been the subject of several recent analyst reports. B. Riley Financial reiterated a “neutral” rating on shares of Energy Recovery in a research note on Thursday, November 6th. Loop Capital set a $18.20 price target on shares of Energy Recovery in a report on Monday, November 10th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Energy Recovery in a research report on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $17.07.

Insider Activity

In related news, insider William Yeung sold 7,271 shares of the firm’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $14.55, for a total transaction of $105,793.05. Following the completion of the sale, the insider 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Arve Hanstveit sold 15,000 shares of Energy Recovery stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $14.97, for a total transaction of $224,550.00. Following the completion of the sale, the director directly owned 640,220 shares in the company, valued at approximately $9,584,093.40. This represents a 2.29% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 25,260 shares of company stock valued at $374,213. 3.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Energy Recovery

Several institutional investors have recently bought and sold shares of ERII. Wexford Capital LP bought a new position in Energy Recovery during the third quarter valued at $27,000. Hantz Financial Services Inc. lifted its position 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 last quarter. Parallel Advisors LLC purchased a new position in shares of Energy Recovery during the 4th quarter valued at $38,000. State of Alaska Department of Revenue bought a new position in shares of Energy Recovery during the 3rd quarter worth $46,000. Finally, Comerica Bank increased its holdings in Energy Recovery by 150.5% in the 4th 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 during the last quarter. Hedge funds and other institutional investors own 83.58% of the company’s stock.

Energy Recovery Trading Down 33.0%

The firm has a fifty day moving average of $14.68 and a two-hundred day moving average of $14.92. The company has a market cap of $572.34 million, a PE ratio of 31.80 and a beta of 1.09.

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.