Gold prices dip as hawkish Fed minutes weigh ahead of Jackson Hole
SAN LEANDRO, Calif. - Energy Recovery , Inc. (NASDAQ:ERII), a leader in energy efficiency technology with a market capitalization of $850 million, has revealed the approval of a new share repurchase program by its Board of Directors. The company plans to buy back up to $30 million of its outstanding common stock over the next 12 months starting from February 2025. According to InvestingPro data, the company maintains impressive gross profit margins of 66% and holds more cash than debt on its balance sheet.
This new repurchase program follows the completion of a previous $50 million share buyback, which concluded in the fourth quarter of 2024. During that program, Energy Recovery repurchased 3.2 million shares at an average price of $15.39 each.
President and CEO David Moon expressed confidence in the company’s growth strategy and its continued ability to improve margins and reduce costs. Moon’s optimism is supported by Energy Recovery’s historical performance, which has seen the company consistently generate cash flow exceeding its capital expenditure and growth capital needs for several years.
The repurchase of shares will be conducted through open market trades, block trades, and privately negotiated transactions, subject to market conditions and other factors. Management retains discretion over the timing and volume of repurchases, which are not guaranteed within any specific timeframe. The program may be adjusted, extended, or terminated at any time, as per company policy.
Energy Recovery’s forward-looking statements, including expectations of margin improvements and cash flow generation, are based on current management beliefs and estimates. However, these statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially.
The company, known for its pressure exchanger technology and solutions that enhance operational efficiency and environmental sustainability, has been a significant player in the desalination industry for over three decades. With headquarters in the San Francisco Bay Area and facilities in California, Energy Recovery maintains a global presence with sales and technical support worldwide. For a comprehensive analysis of Energy Recovery’s market position and growth potential, investors can access the detailed Pro Research Report available on InvestingPro, which is part of their coverage of over 1,400 US equities.
This news article is based on a press release statement from Energy Recovery, Inc. and does not include any additional analysis or commentary. The information presented is a factual summary of the company’s announcement regarding its share repurchase program.
In other recent news, Seaport Global Securities initiated coverage on Energy Recovery, assigning a Buy rating and setting a price target of $22.00. The firm emphasized Energy Recovery’s strong market position, particularly in the saltwater reverse osmosis desalination sector. This dominance is considered a significant competitive advantage for the company. Additionally, Energy Recovery’s expansion into wastewater treatment and the development of pressure exchange technology for CO2 refrigeration in supermarkets are highlighted as key growth drivers. The analyst from Seaport Global Securities noted that the CO2 refrigeration technology is expected to be a catalyst for the company’s expansion in the supermarket industry. This technology is anticipated to contribute significantly to Energy Recovery’s market presence and financial performance. The $22 price target reflects confidence in the company’s growth trajectory and its ability to capitalize on its unique market position. The endorsement from Seaport Global Securities indicates potential for Energy Recovery in the evolving technology landscape of desalination and refrigeration systems.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.