Energy Recovery (NASDAQ:ERII) Hits New 52-Week Low Following Weak Earnings

Energy Recovery, Inc. (NASDAQ:ERII) reached a new 52-week low during trading on Thursday after the company announced weaker than expected quarterly earnings. 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 earnings per share for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.14). Energy Recovery had a return on equity of 12.21% and a net margin of 17.01%.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.

Analysts Set New Price Targets

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

Insider Transactions at Energy Recovery

In related news, insider William Yeung sold 7,271 shares of the business’s stock in a transaction dated Wednesday, January 28th. The stock was sold at an average price of $14.55, for a total value of $105,793.05. Following the completion of the sale, the insider directly owned 90,098 shares of the company’s stock, valued at $1,310,925.90. The trade was a 7.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Arve Hanstveit sold 15,000 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $14.97, for a total value of $224,550.00. Following the sale, the director owned 640,220 shares in the company, valued at $9,584,093.40. The trade was a 2.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 25,260 shares of company stock worth $374,213. Company insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On Energy Recovery

A number of institutional investors have recently made changes to their positions in ERII. Aristides Capital LLC bought a new position in Energy Recovery during the fourth quarter worth $182,000. Invesco Ltd. lifted its position in shares of Energy Recovery by 15.8% in the 4th quarter. Invesco Ltd. now owns 746,036 shares of the industrial products company’s stock worth $10,064,000 after buying an additional 101,972 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its position in shares of Energy Recovery by 52.8% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 38,950 shares of the industrial products company’s stock worth $525,000 after buying an additional 13,463 shares during the last quarter. XTX Topco Ltd acquired a new position in shares of Energy Recovery in the 4th quarter valued at about $390,000. Finally, Old West Investment Management LLC grew its position in shares of Energy Recovery by 14.6% during the 4th quarter. Old West Investment Management LLC now owns 49,944 shares of the industrial products company’s stock valued at $674,000 after buying an additional 6,346 shares during the last quarter. 83.58% of the stock is currently owned by institutional investors.

Energy Recovery Price Performance

The firm’s 50 day moving average is $14.53 and its two-hundred day moving average is $14.87. The stock has a market cap of $551.02 million, a price-to-earnings ratio of 24.26 and a beta of 1.09.

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.