Energy Recovery (ERII) Sees Large Volume Increase on Earnings Beat

Shares of Energy Recovery, Inc. (NASDAQ:ERII) saw an uptick in trading volume on Friday following a better than expected earnings announcement. 1,256,000 shares traded hands during mid-day trading, an increase of 261% from the previous session’s volume of 347,539 shares.The stock last traded at $9.18 and had previously closed at $7.77.

The industrial products company reported $0.08 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.05 by $0.03. Energy Recovery had a net margin of 46.91% and a return on equity of 10.72%. The firm had revenue of $22.20 million during the quarter, compared to the consensus estimate of $20.63 million. During the same quarter in the prior year, the firm earned $0.03 earnings per share. The business’s quarterly revenue was up 29.8% on a year-over-year basis.

Several brokerages have commented on ERII. B. Riley set a $20.00 target price on shares of Energy Recovery and gave the company a “buy” rating in a research note on Monday, August 6th. Zacks Investment Research downgraded shares of Energy Recovery from a “buy” rating to a “hold” rating in a research note on Friday. BidaskClub raised shares of Energy Recovery from a “strong sell” rating to a “sell” rating in a research note on Friday. TheStreet raised shares of Energy Recovery from a “c” rating to a “b-” rating in a research note on Tuesday, August 28th. Finally, ValuEngine downgraded shares of Energy Recovery from a “buy” rating to a “hold” rating in a research note on Friday, August 3rd. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and three have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and an average price target of $14.13.

In other news, VP Nocair Bensalah sold 78,244 shares of the company’s stock in a transaction that occurred on Wednesday, October 3rd. The shares were sold at an average price of $8.78, for a total value of $686,982.32. Following the completion of the transaction, the vice president now owns 95,000 shares in the company, valued at $834,100. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 23.80% of the stock is owned by corporate insiders.

Institutional investors have recently added to or reduced their stakes in the company. Cadence Capital Management LLC boosted its holdings in shares of Energy Recovery by 12.1% in the second quarter. Cadence Capital Management LLC now owns 220,176 shares of the industrial products company’s stock valued at $1,779,000 after buying an additional 23,777 shares during the period. Trigran Investments Inc. acquired a new position in shares of Energy Recovery in the second quarter valued at approximately $2,292,000. Schwab Charles Investment Management Inc. boosted its holdings in shares of Energy Recovery by 10.8% in the first quarter. Schwab Charles Investment Management Inc. now owns 165,409 shares of the industrial products company’s stock valued at $1,360,000 after buying an additional 16,097 shares during the period. First Trust Advisors LP boosted its holdings in shares of Energy Recovery by 2.5% in the second quarter. First Trust Advisors LP now owns 563,416 shares of the industrial products company’s stock valued at $4,552,000 after buying an additional 13,858 shares during the period. Finally, Manchester Capital Management LLC boosted its holdings in shares of Energy Recovery by 55.9% in the second quarter. Manchester Capital Management LLC now owns 31,613 shares of the industrial products company’s stock valued at $255,000 after buying an additional 11,338 shares during the period. Institutional investors own 37.09% of the company’s stock.

The firm has a market cap of $385.24 million, a price-to-earnings ratio of 131.14 and a beta of 5.62. The company has a current ratio of 4.51, a quick ratio of 4.26 and a debt-to-equity ratio of 0.13.

Energy Recovery Company Profile (NASDAQ:ERII)

Energy Recovery, Inc provides energy solutions to industrial fluid flow markets under the ERI, PX, Pressure Exchanger, PX Pressure Exchanger, AT, AquaBold, VorTeq, MTeq, IsoBoost, and IsoGen names worldwide. The company operates through Water and Oil & Gas segments. It offers pressure exchanger energy recovery devices for water desalination plants; hydraulic turbochargers for low-pressure brackish, high-pressure seawater reverse osmosis systems, and other water treatment applications; and high-pressure and circulation pumps for low and high-pressure reverse osmosis systems.

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