StockNews.com Downgrades Energy Recovery (NASDAQ:ERII) to Hold

StockNews.com lowered shares of Energy Recovery (NASDAQ:ERII) from a buy rating to a hold rating in a research report released on Thursday morning.

Separately, B. Riley downgraded Energy Recovery from a “buy” rating to a “neutral” rating and cut their price objective for the company from $20.00 to $12.50 in a report on Thursday. Three investment analysts have rated the stock with a hold rating, two have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, Energy Recovery currently has an average rating of “Moderate Buy” and a consensus target price of $18.88.

Energy Recovery Stock Down 18.3 %

NASDAQ ERII opened at $12.29 on Thursday. The company has a market capitalization of $672.79 million, a P/E ratio of 36.14 and a beta of 1.09. Energy Recovery has a 12-month low of $10.86 and a 12-month high of $20.27. The firm has a 50-day moving average price of $15.43 and a two-hundred day moving average price of $15.69.

Energy Recovery (NASDAQ:ERII) last issued its earnings results on Wednesday, May 7th. The industrial products company reported ($0.13) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.16). Energy Recovery had a net margin of 14.35% and a return on equity of 8.90%. The firm had revenue of $8.07 million during the quarter, compared to analyst estimates of $21.97 million. During the same quarter in the previous year, the firm posted ($0.08) earnings per share. Energy Recovery’s quarterly revenue was down 33.1% compared to the same quarter last year. Equities analysts expect that Energy Recovery will post 0.36 EPS for the current year.

Insider Activity

In other news, Director Arve Hanstveit sold 50,000 shares of the stock in a transaction on Tuesday, March 11th. The shares were sold at an average price of $16.34, for a total transaction of $817,000.00. Following the completion of the sale, the director now directly owns 693,182 shares in the company, valued at $11,326,593.88. This represents a 6.73 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Rodney Clemente sold 21,444 shares of the business’s stock in a transaction on Thursday, February 20th. The shares were sold at an average price of $15.42, for a total transaction of $330,666.48. Following the completion of the transaction, the senior vice president now owns 111,109 shares in the company, valued at approximately $1,713,300.78. The trade was a 16.18 % decrease in their position. The disclosure for this sale can be found here. Insiders own 4.10% of the company’s stock.

Institutional Investors Weigh In On Energy Recovery

Several large investors have recently added to or reduced their stakes in ERII. Avanza Fonder AB bought a new position in shares of Energy Recovery during the 4th quarter worth approximately $107,000. Schroder Investment Management Group bought a new position in shares of Energy Recovery during the 4th quarter worth about $160,000. Juncture Wealth Strategies LLC acquired a new stake in shares of Energy Recovery in the 1st quarter valued at about $178,000. Nebula Research & Development LLC increased its position in Energy Recovery by 6.3% in the 4th quarter. Nebula Research & Development LLC now owns 11,577 shares of the industrial products company’s stock valued at $170,000 after buying an additional 687 shares in the last quarter. Finally, Polymer Capital Management US LLC acquired a new position in Energy Recovery during the 4th quarter worth approximately $211,000. Institutional investors and hedge funds own 83.58% of the company’s stock.

Energy Recovery Company Profile

Energy Recovery, Inc, together with its subsidiaries, designs, manufactures, and sells energy efficiency technology solutions in the Americas, the Middle East, Africa, Asia, and Europe. The company operates through Water and Emerging Technologies segments. The company offers high and low pressure, and ultra pressure exchangers; AT and LPT hydraulic turbochargers; and high-pressure feed and circulation booster pumps for use in seawater and brackish desalination, and wastewater treatment.