In a recent transaction, Joshua Ballard, the Chief Financial Officer of Energy Recovery , Inc. (NASDAQ:ERII), sold 4,051 shares of the company's common stock. The transaction, which took place on May 28, 2024, was executed at a weighted average price ranging from $13.50 to $13.65 per share, resulting in a total value of approximately $54,866.
This sale has adjusted Ballard's holdings in Energy Recovery, Inc., leaving him with a total of 40,376 shares following the transaction. The specific prices per share at which the stock was sold were not disclosed in the report, but the average selling price was noted as $13.544.
Investors often monitor the buying and selling activities of company insiders like Ballard as these transactions can provide insight into the executive's view of the company's current valuation and future prospects. However, such transactions can be motivated by a variety of personal financial considerations and do not always indicate a change in company performance or outlook.
Energy Recovery, Inc. specializes in designing and manufacturing solutions for industrial fluid flow processes, and it is known for its work in the energy sector. The company's technology is used in multiple applications, including water desalination, oil and gas, and chemical processing.
The filing did not include any comments from Ballard or Energy Recovery, Inc. regarding the rationale behind the sale. Shareholders and potential investors in Energy Recovery, Inc. can access full transaction details upon request, as indicated in the filing's footnotes.
The transaction was filed in compliance with the SEC's requirements, and Ballard's attorney-in-fact, William Yeung, signed the document on his behalf, as indicated in the submitted SEC Form 4.
InvestingPro Insights
Following the recent insider transaction by Joshua Ballard, CFO of Energy Recovery, Inc. (NASDAQ:ERII), a glance at the company's financial health and stock performance through InvestingPro data reveals some intriguing aspects. With a market capitalization of $769.37 million and a P/E ratio standing at 38.26, Energy Recovery appears to be valued at a premium compared to its earnings. The company's gross profit margin is notably high at 67.74% for the last twelve months as of Q1 2024, underscoring its efficiency in managing production costs relative to revenue.
Despite the robust gross profit margins, the company's stock has seen significant volatility. Over the past six months, the price total return has decreased by 30.59%, and the year-to-date figures aren't much brighter, with a 29.78% decrease. This could reflect market sentiment and external factors affecting the stock's performance. Analysts have also revised their earnings expectations downwards for the upcoming period, which may be contributing to the recent price movements.
InvestingPro Tips suggest that while Energy Recovery holds more cash than debt, indicating a strong balance sheet, and liquid assets exceed short-term obligations, ensuring the company's short-term financial stability, there are concerns regarding the valuation multiples with the stock trading at high EBIT, EBITDA, and revenue valuation multiples. Moreover, the stock has taken a significant hit over the last six months, which could be a point of consideration for investors looking at the current stock price in relation to its recent highs and lows.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, such as the company's PEG ratio, which is at a low 0.41, potentially indicating future earnings growth not yet reflected in the stock's price. To explore these insights and more, visit https://www.investing.com/pro/ERII and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes numerous other valuable tips to inform your investment decisions.
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