Energy Recovery , Inc. (NASDAQ:ERII) President and CEO David W. Moon has recently made a notable purchase of the company's common stock. On May 7, 2024, Moon acquired 10,500 shares at a weighted average price between $13.34 and $13.47, amounting to a total investment of approximately $141,288.
This transaction has increased Moon's direct holdings in the company to 29,750 shares. The purchase reflects the CEO's confidence in the company and aligns his interests even more closely with those of Energy Recovery's shareholders.
In addition to the purchase, a separate transaction was reported involving the cancellation of 8,040 unvested restricted stock units, which were forfeited without consideration. This adjustment was connected to Moon's acceptance of the role as the company's permanent CEO and President earlier in the year, in line with the vesting conditions specified in the award agreement.
Energy Recovery, Inc., based in San Leandro, California, specializes in designing and manufacturing solutions for industrial fluid-flow markets. With Moon at the helm, investors will be watching closely to see how his recent share purchase translates into the company's strategy and performance moving forward.
InvestingPro Insights
Following the recent insider stock purchase by President and CEO David W. Moon, investors might be interested in the financial health and valuation metrics of Energy Recovery, Inc. (NASDAQ:ERII). According to InvestingPro, the company holds more cash than debt on its balance sheet, indicating a strong financial position that could support strategic initiatives and weather economic downturns. Additionally, Energy Recovery's gross profit margins are impressive, sitting at 67.74% for the last twelve months as of Q1 2024, which is a testament to the company's ability to manage costs and maintain profitability in its operations.
On the valuation front, Energy Recovery currently has a market capitalization of approximately $796.89 million and trades at a P/E ratio of 40.23. While this reflects a high earnings multiple, the company's PEG ratio of 0.42 suggests that the stock may be undervalued when considering its near-term earnings growth potential. It's worth noting that two analysts have revised their earnings estimates downwards for the upcoming period, which is a factor investors may want to consider.
For those looking to delve deeper into the financial metrics and forecasts for Energy Recovery, there are additional InvestingPro Tips available. In total, there are 12 InvestingPro Tips listed, which can provide further insights into the company's valuation, profitability, and analyst predictions. Interested readers can find these tips and more detailed analytics by visiting InvestingPro. Moreover, users can take advantage of an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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