Arve Hanstveit, a director at Energy Recovery , Inc. (NASDAQ:ERII), recently sold 20,000 shares of the company's common stock. The shares were sold at a price of $16.87 each, amounting to a total transaction value of $337,400. The sale comes as the stock has declined 14% year-to-date, though InvestingPro data shows the company maintains impressive gross profit margins of 66% and holds more cash than debt on its balance sheet. Following this sale, Hanstveit continues to hold 743,182 shares directly. Additionally, Hanstveit holds 60,000 shares indirectly through the Sophie Hanstveit Irrevocable Trust and another 60,000 shares through the Natasha Hanstveit Irrevocable Trust, where he serves as the sole trustee with sole voting and investment power. According to InvestingPro, Energy Recovery currently trades at a P/E ratio of 47.5x, with analysts maintaining a bullish outlook. Subscribers can access 10+ additional ProTips and a comprehensive research report for deeper insights into ERII's valuation and growth prospects.
In other recent news, Energy Recovery has been in the spotlight with significant developments. The firm reported a record total revenue of $38.6 million in the third quarter, contributing to a full-year revenue forecast of $140 million to $150 million. The company also announced a $50 million stock buyback program, authorized by its Board of Directors, set to commence in November 2024.
Seaport Global Securities initiated coverage on Energy Recovery, assigning a Buy rating and a price target of $22.00, highlighting the company's strong market position, particularly in the saltwater reverse osmosis desalination sector. Meanwhile, Evercore ISI reaffirmed an Outperform rating on Energy Recovery's stock, adjusting the price target to $20 from the previous $23.
The company is tracking over $500 million in mega project activity over the next five years, with efforts concentrated in China and India for its wastewater segment. For its refrigeration business, Energy Recovery is set to collaborate with multiple Original Equipment Manufacturers on integrating the PX G technology into their CO2 transcritical racks. Looking ahead, Energy Recovery expects fourth-quarter revenue to be between $62 million and $72 million, with a strong cash position of $140 million.
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