Energy Recovery (NASDAQ:ERII) Shares Gap Up – Should You Buy?

Energy Recovery, Inc. (NASDAQ:ERII)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $13.08, but opened at $13.50. Energy Recovery shares last traded at $13.13, with a volume of 51,261 shares traded.

Analyst Upgrades and Downgrades

ERII has been the topic of several research reports. StockNews.com lowered shares of Energy Recovery from a “buy” rating to a “hold” rating in a report on Thursday, May 8th. B. Riley downgraded shares of Energy Recovery from a “buy” rating to a “neutral” rating and cut their target price for the company from $20.00 to $12.50 in a research note on Thursday, May 8th. Three analysts have rated the stock with a hold rating, two have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $18.88.

Energy Recovery Stock Performance

The stock has a fifty day simple moving average of $14.93 and a two-hundred day simple moving average of $15.39. The stock has a market cap of $695.57 million, a PE ratio of 37.37 and a beta of 1.09.

Energy Recovery (NASDAQ:ERII) last released its quarterly earnings results on Wednesday, May 7th. The industrial products company reported ($0.13) earnings per share for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $21.97 million. During the same period in the previous year, the business posted ($0.08) earnings per share. Energy Recovery’s revenue for the quarter was down 33.1% on a year-over-year basis. On average, equities analysts predict that Energy Recovery, Inc. will post 0.36 EPS for the current fiscal year.

Insider Activity

In related news, SVP Rodney Clemente sold 21,444 shares of the stock in a transaction dated Thursday, February 20th. The stock was sold at an average price of $15.42, for a total value of $330,666.48. Following the completion of the transaction, the senior vice president now owns 111,109 shares of the company’s stock, valued at approximately $1,713,300.78. This represents a 16.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO David W. Moon acquired 4,200 shares of the company’s stock in a transaction on Tuesday, May 13th. The shares were acquired at an average price of $12.20 per share, for a total transaction of $51,240.00. Following the completion of the acquisition, the chief executive officer now directly owns 36,950 shares in the company, valued at $450,790. The trade was a 12.82% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 4.10% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. raised its stake in shares of Energy Recovery by 24.6% in the 4th quarter. Ameriprise Financial Inc. now owns 4,953,951 shares of the industrial products company’s stock valued at $72,823,000 after purchasing an additional 978,490 shares in the last quarter. Select Equity Group L.P. grew its position in shares of Energy Recovery by 403.5% during the 1st quarter. Select Equity Group L.P. now owns 667,157 shares of the industrial products company’s stock valued at $10,601,000 after buying an additional 534,662 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in Energy Recovery during the fourth quarter worth about $5,741,000. KLP Kapitalforvaltning AS bought a new position in Energy Recovery in the fourth quarter worth about $4,670,000. Finally, Duff & Phelps Investment Management Co. bought a new position in shares of Energy Recovery during the fourth quarter valued at approximately $3,798,000. 83.58% of the stock is currently owned by institutional investors.

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.