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

Energy Recovery, Inc. (NASDAQ:ERII) shares gapped up prior to trading 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.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Fearnley Fonds downgraded shares of Energy Recovery from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 6th. Evercore ISI dropped their target price on shares of Energy Recovery from $23.00 to $20.00 and set an “outperform” rating on the stock in a research report on Tuesday. StockNews.com raised shares of Energy Recovery from a “sell” rating to a “hold” rating in a research report on Thursday, August 1st. Finally, B. Riley dropped 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 report on Tuesday. Two investment 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. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.33.

Energy Recovery Stock Up 1.0 %

The company’s 50-day simple moving average is $17.78 and its 200 day simple moving average is $15.70. The company has a market capitalization of $897.30 million, a P/E ratio of 45.74 and a beta of 1.22.

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

Insider Activity at Energy Recovery

In other news, CEO David W. Moon sold 2,550 shares of the stock in a transaction on Monday, October 28th. The shares were sold at an average price of $17.97, for a total value of $45,823.50. Following the completion of the transaction, the chief executive officer now owns 87,101 shares in the company, valued at approximately $1,565,204.97. This represents a 2.84 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Rodney Clemente sold 4,207 shares of the stock in a transaction on Monday, November 11th. The shares were sold at an average price of $20.06, for a total transaction of $84,392.42. Following the completion of the transaction, the senior vice president now owns 106,367 shares of the company’s stock, valued at approximately $2,133,722.02. This represents a 3.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 43,406 shares of company stock worth $828,688 in the last ninety days. 4.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Energy Recovery

A number of hedge funds have recently made changes to their positions in ERII. Baillie Gifford & Co. acquired a new stake in shares of Energy Recovery during the 3rd quarter worth about $15,237,000. Alpha Wave Global LP increased its position in shares of Energy Recovery by 93.0% during the 3rd 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 in the last quarter. Millennium Management LLC increased its position in shares of Energy Recovery by 130.3% during the 2nd 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 in the last quarter. KBC Group NV increased its position in shares of Energy Recovery by 14.1% during the 3rd 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 in the last quarter. Finally, Roubaix Capital LLC acquired a new stake in shares of Energy Recovery during the 2nd quarter worth about $1,841,000. 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.