Energy Recovery (ERII) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of Energy Recovery (NASDAQ:ERII) from a buy rating to a hold rating in a research report sent to investors on Wednesday.

According to Zacks, “Based in San Leandro, California, ENERGY RECOVERY, INC. is a leading global developer and manufacturer of highly efficient energy recovery devices utilized in the water desalination industry. Energy Recovery, Inc. operates primarily in the sea water reverse osmosis segment of the desalination industry.ERI manufactures ultra-high efficiency recovery products and technology, specifically the ERI PX Pressure Exchanger, that are among the enabling technologies driving the rapid growth in seawater reverse osmosis desalination, and are helping to make desalination affordable worldwide. “

Several other research firms also recently commented on ERII. BidaskClub downgraded Energy Recovery from a sell rating to a strong sell rating in a research report on Tuesday, October 9th. TheStreet raised Energy Recovery from a c rating to a b- rating in a research report on Tuesday, August 28th. Finally, Seaport Global Securities cut Energy Recovery from a buy rating to a neutral rating in a research note on Friday, December 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the stock. The stock has a consensus rating of Hold and a consensus target price of $14.25.

Energy Recovery stock opened at $7.66 on Wednesday. Energy Recovery has a 12 month low of $6.17 and a 12 month high of $11.14. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.99 and a current ratio of 4.22. The company has a market capitalization of $403.97 million, a PE ratio of 109.43 and a beta of 5.67.

Energy Recovery (NASDAQ:ERII) last posted its earnings results on Friday, November 2nd. The industrial products company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.05 by $0.03. Energy Recovery had a return on equity of 12.63% and a net margin of 48.60%. The company had revenue of $22.20 million for the quarter, compared to the consensus estimate of $20.63 million. During the same quarter in the prior year, the business earned $0.03 earnings per share. The firm’s revenue for the quarter was up 29.8% on a year-over-year basis. On average, analysts anticipate that Energy Recovery will post 0.2 EPS for the current year.

In related news, Director Arve Hanstveit sold 45,708 shares of the business’s stock in a transaction that occurred on Thursday, November 8th. The stock was sold at an average price of $9.15, for a total value of $418,228.20. Following the completion of the sale, the director now directly owns 1,113,945 shares in the company, valued at $10,192,596.75. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Nocair Bensalah sold 31,404 shares of the business’s stock in a transaction that occurred on Monday, October 1st. The shares were sold at an average price of $8.77, for a total value of $275,413.08. Following the completion of the sale, the vice president now owns 95,000 shares of the company’s stock, valued at $833,150. The disclosure for this sale can be found here. Over the last quarter, insiders sold 155,356 shares of company stock valued at $1,380,624. 23.80% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the stock. Trexquant Investment LP bought a new stake in shares of Energy Recovery in the third quarter valued at approximately $115,000. Aristotle Atlantic Partners LLC bought a new stake in shares of Energy Recovery in the second quarter valued at approximately $121,000. Aperio Group LLC bought a new stake in shares of Energy Recovery in the second quarter valued at approximately $132,000. Alambic Investment Management L.P. bought a new stake in shares of Energy Recovery in the third quarter valued at approximately $166,000. Finally, Fox Run Management L.L.C. bought a new stake in shares of Energy Recovery in the third quarter valued at approximately $167,000. Institutional investors and hedge funds own 33.82% of the company’s stock.

About Energy Recovery

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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