Energy Recovery (NASDAQ:ERII) Shares Break Above 50 Day Moving Average – What’s Next?

Energy Recovery, Inc. (NASDAQ:ERII) passed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $7.11 and traded as high as $7.12. Energy Recovery shares last traded at $7.12, with a volume of 703,340 shares trading hands.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ERII. B. Riley Financial dropped their target price on Energy Recovery from $10.00 to $8.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Seaport Research Partners downgraded Energy Recovery from a “buy” rating to a “neutral” rating in a report on Monday, September 14th. Finally, Weiss Ratings downgraded Energy Recovery from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, September 16th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Energy Recovery presently has an average rating of “Reduce” and a consensus price target of $11.67.

Energy Recovery Trading Up 2.4%

The stock’s 50-day moving average price is $7.11 and its two-hundred day moving average price is $9.67. The stock has a market capitalization of $366.96 million, a P/E ratio of 25.43 and a beta of 0.91.

Energy Recovery (NASDAQ:ERII) last announced its quarterly earnings data on Wednesday, August 5th. The industrial products company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.01). The firm had revenue of $12.00 million during the quarter, compared to analysts’ expectations of $18.36 million. Energy Recovery had a return on equity of 8.25% and a net margin of 12.72%. On average, equities research analysts predict that Energy Recovery, Inc. will post -0.17 earnings per share for the current year.

Hedge Funds Weigh In On Energy Recovery

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ERII. Quantbot Technologies LP bought a new position in shares of Energy Recovery in the second quarter worth approximately $33,000. Versant Capital Management Inc raised its stake in Energy Recovery by 737.6% in the third quarter. Versant Capital Management Inc now owns 5,252 shares of the industrial products company’s stock valued at $35,000 after purchasing an additional 4,625 shares in the last quarter. Group One Trading LLC bought a new stake in Energy Recovery during the first quarter valued at approximately $41,000. S&CO Inc. bought a new stake in Energy Recovery during the second quarter valued at approximately $117,000. Finally, The Manufacturers Life Insurance Company bought a new stake in Energy Recovery during the second quarter valued at approximately $132,000. 83.58% of the stock is currently owned by hedge funds and other institutional investors.

Energy Recovery Company Profile

Energy Recovery, Inc develops and manufactures energy-efficiency technologies for industrial fluid-flow applications. The company is best known for its pressure exchanger systems, which capture hydraulic energy from high-pressure fluid streams and transfer it to lower-pressure incoming fluids. This process can reduce energy consumption and operating costs in demanding industrial environments.

Energy Recovery’s products are used extensively in seawater and brackish-water reverse-osmosis desalination, where its PX Pressure Exchanger technology helps recover energy from the high-pressure reject stream.