Energy Recovery (NASDAQ:ERII) Stock Price Down 13% After Earnings Miss

Shares of Energy Recovery, Inc. (NASDAQ:ERII) traded down 13% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $10.03 and last traded at $10.0970. 277,162 shares changed hands during mid-day 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 the consensus estimate of $8.37 million. Energy Recovery had a net margin of 15.07% and a return on equity of 10.89%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Loop Capital set a $13.00 price objective on Energy Recovery in a research note on Monday, March 2nd. Northcoast Research downgraded Energy Recovery from a “buy” rating to a “neutral” rating in a research note on Wednesday, April 15th. Finally, Weiss Ratings reiterated 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 assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Energy Recovery currently has an average rating of “Moderate Buy” and a consensus price target of $15.00.

Insider Activity at Energy Recovery

In other Energy Recovery news, Director Arve Hanstveit sold 165,292 shares of the company’s stock in a transaction that occurred on Thursday, April 2nd. The stock was 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 directly owned 384,928 shares in the company, valued at $3,903,169.92. This represents a 30.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Rodney Clemente sold 20,568 shares of the company’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 value of $218,226.48. Following the completion of the transaction, the senior vice president owned 116,008 shares of the company’s stock, valued at $1,230,844.88. The trade was a 15.06% decrease in their ownership of the stock. 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 over the last 90 days. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Energy Recovery

Several hedge funds have recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Energy Recovery by 4.6% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 13,984 shares of the industrial products company’s stock worth $218,000 after acquiring an additional 613 shares in the last quarter. Skandinaviska Enskilda Banken AB publ raised its holdings in shares of Energy Recovery by 2.6% during the 3rd quarter. Skandinaviska Enskilda Banken AB publ now owns 36,649 shares of the industrial products company’s stock worth $559,000 after acquiring an additional 914 shares in the last quarter. S&CO Inc. raised its holdings in shares of Energy Recovery by 9.1% during the 3rd quarter. S&CO Inc. now owns 12,000 shares of the industrial products company’s stock worth $185,000 after acquiring an additional 1,000 shares in the last quarter. Aviva PLC raised its holdings in shares of Energy Recovery by 4.9% during the 4th quarter. Aviva PLC now owns 33,974 shares of the industrial products company’s stock worth $458,000 after acquiring an additional 1,599 shares in the last quarter. Finally, Wexford Capital LP purchased a new stake in shares of Energy Recovery during the 3rd quarter worth approximately $27,000. 83.58% of the stock is owned by hedge funds and other institutional investors.

Energy Recovery Stock Performance

The firm has a market capitalization of $470.56 million, a PE ratio of 24.03 and a beta of 1.04. The company has a fifty day moving average price of $10.62 and a 200-day moving average price 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.