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

Energy Recovery, Inc. (NASDAQ:ERII)’s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $14.66, but opened at $15.34. Energy Recovery shares last traded at $15.14, with a volume of 69,978 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Evercore ISI decreased their price objective on shares of Energy Recovery from $23.00 to $20.00 and set an “outperform” rating on the stock in a report on Tuesday. B. Riley reduced their target price on shares of Energy Recovery from $22.00 to $20.00 and set a “buy” rating on the stock in a research note on Tuesday. StockNews.com raised shares of Energy Recovery from a “sell” rating to a “hold” rating in a research note on Thursday, August 1st. Finally, Fearnley Fonds lowered shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 6th. Two research analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.33.

Energy Recovery Stock Performance

The stock has a market capitalization of $897.30 million, a price-to-earnings ratio of 45.74 and a beta of 1.22. The firm’s fifty day simple moving average is $17.78 and its 200 day simple moving average is $15.70.

Energy Recovery (NASDAQ:ERII) last posted its quarterly earnings data on Wednesday, October 30th. The industrial products company reported $0.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.01. Energy Recovery had a net margin of 14.35% and a return on equity of 8.90%. The company had revenue of $38.60 million for the quarter, compared to the consensus estimate of $37.37 million. During the same period last year, the company earned $0.17 earnings per share. The firm’s revenue was up 4.3% compared to the same quarter last year. Analysts forecast that Energy Recovery, Inc. will post 0.41 earnings per share for the current year.

Insider Activity

In related news, CTO Farshad Ghasripoor sold 10,526 shares of the firm’s stock in a transaction on Monday, October 28th. The shares were sold at an average price of $17.97, for a total value of $189,152.22. Following the completion of the transaction, the chief technology officer now directly owns 126,961 shares of the company’s stock, valued at approximately $2,281,489.17. This trade represents a 7.66 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Rodney Clemente sold 19,618 shares of Energy Recovery stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $20.00, for a total transaction of $392,360.00. Following the transaction, the senior vice president now directly owns 114,205 shares of the company’s stock, valued at approximately $2,284,100. This trade represents a 14.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,406 shares of company stock worth $828,688 over the last ninety days. Insiders own 4.10% of the company’s stock.

Hedge Funds Weigh In On Energy Recovery

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ERII. Baillie Gifford & Co. bought a new position in Energy Recovery during the third quarter worth $15,237,000. Alpha Wave Global LP boosted its position in Energy Recovery by 93.0% during the third quarter. Alpha Wave Global LP now owns 1,171,586 shares of the industrial products company’s stock worth $20,374,000 after purchasing an additional 564,463 shares during the period. Millennium Management LLC boosted its position in Energy Recovery by 130.3% during the second quarter. Millennium Management LLC now owns 356,595 shares of the industrial products company’s stock worth $4,739,000 after purchasing an additional 201,770 shares during the period. KBC Group NV boosted its position in Energy Recovery by 14.1% during the third quarter. KBC Group NV now owns 1,238,219 shares of the industrial products company’s stock worth $21,533,000 after purchasing an additional 153,381 shares during the period. Finally, Roubaix Capital LLC bought a new position in Energy Recovery during the second quarter worth $1,841,000. 83.58% of the stock is 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.