Energy Recovery , Inc. (NASDAQ:ERII) President and CEO David W. Moon has recently sold 1,219 shares of the company's common stock, according to a regulatory filing with the SEC. The transaction, which took place on June 18, 2024, amounted to a total of $15,565 at an average price of $12.769 per share. This price reflects a weighted average, with individual sales ranging from $12.71 to $12.88 per share.
The sale was executed in accordance with Rule 16b-3(e), which typically relates to the payment of tax obligations through the selling of securities incident to the vesting of securities. Energy Recovery, Inc., based in San Leandro, California, specializes in designing and manufacturing products for industrial fluid flow markets.
Following this transaction, Moon continues to have a significant stake in the company, with direct ownership of 89,651 shares. Additionally, there is an indirect ownership of 29,750 shares held in the David and Rhonda Moon Joint Community Property (JCP), suggesting continued confidence in the firm's prospects.
Investors and the market often monitor insider transactions, such as those by CEOs, for insights into executive sentiment regarding the company's performance and value. While the recent sale by Moon represents a divestment, his remaining substantial holdings indicate a vested interest in the company's future.
The sale was facilitated by Derek Ching, Attorney-in-Fact for David W. Moon, as indicated by the signature on the SEC filing. Energy Recovery, Inc. has not issued any public statement regarding the transaction at this time.
In other recent news, Energy Recovery, Inc. has secured contracts worth $15 million to supply its PX Pressure Exchanger devices to seawater reverse osmosis desalination plants in India. These orders, expected to be fulfilled in 2024, will contribute to India's efforts to enhance its desalination capacity. The company's technology is designed to reduce energy consumption by up to 60%, significantly decreasing carbon emissions and operational costs. With these devices installed, the new desalination plants will prevent over 300,000 metric tons of carbon emissions annually.
In addition to these contracts, Energy Recovery reported first-quarter revenues of $12.1 million, in line with company guidance. Despite a loss in the first quarter, the company anticipates a positive financial turnaround in the latter half of the year, with significant contracts signed and a robust pipeline for 2025. The company is also in the process of hiring a new Chief Financial Officer and expanding its market presence by diversifying into the wastewater and CO2 refrigeration sectors. These are among the recent developments for Energy Recovery, a company with a strong history of promoting cost savings and energy efficiency across various industries.
InvestingPro Insights
Amid the news of Energy Recovery, Inc.'s (NASDAQ:ERII) CEO David W. Moon's recent sale of company shares, current and potential investors may find it helpful to consider key financial metrics and expert analysis to better understand the company's market position. With a market capitalization of $714.33 million and a P/E ratio standing at 36.06, Energy Recovery presents an intriguing picture of valuation and market sentiment.
One of the notable InvestingPro Tips for Energy Recovery is its impressive gross profit margins, which have reached 67.74% in the last twelve months as of Q1 2024. This indicates a strong ability to manage costs relative to revenue, a positive sign for investors assessing the company's operational efficiency. Additionally, the company holds more cash than debt on its balance sheet, providing financial stability and flexibility which could be reassuring for shareholders in volatile markets.
However, it's important to note that Energy Recovery has experienced significant price volatility recently, with the stock taking a considerable hit over the last week, month, and six months, as indicated by price total returns of -7.66%, -8.62%, and -32.37%, respectively. This might suggest a period of market correction or investor hesitation, which could be a point of concern or an opportunity for investors, depending on their investment strategy and outlook on the company's fundamentals.
For those seeking more in-depth analysis, InvestingPro offers additional expert tips and insights for Energy Recovery, Inc. at https://www.investing.com/pro/ERII. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 17 additional InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial health and market prospects.
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