Rodney Clemente, Senior Vice President of Water at Energy Recovery , Inc. (NASDAQ:ERII), has sold shares of the company's common stock in a series of transactions. The sales, conducted under a Rule 10b5-1 trading plan, occurred on November 7, November 8, and November 11, 2024.
On November 7, Clemente sold 19,618 shares at an average price of $20 per share. The following day, November 8, he sold an additional 3,631 shares at an average price of $20.153 per share. Finally, on November 11, he sold 4,207 shares at an average price of $20.06 per share. The total value of these transactions amounts to $549,927, with prices ranging from $20.0 to $20.153 per share.
Following these transactions, Clemente retains ownership of 106,367 shares in Energy Recovery.
In other recent news, Energy Recovery Inc. has reported robust Q3 financial results, with a record total revenue of $38.6 million. The company's performance exceeded expectations, and it has projected a full-year revenue forecast of $140 million to $150 million. Significant advancements were made in the company's water and CO2 segments, contributing to this growth.
The water segment saw a year-over-year revenue increase of 4%, primarily driven by demand in the Middle East, North Africa, and India. Meanwhile, the wastewater segment contracts grew by 46%, anticipating revenue of $12 million to $15 million. The company also reported progress in the CO2 business, with energy savings and cooling capacity improvements from the PX G technology.
In terms of future expectations, Energy Recovery anticipates Q4 revenue to be between $62 million and $72 million. The company also reported a strong cash position of $140 million. A strategic investor webinar is scheduled to further discuss the company's future guidance. These recent developments underscore Energy Recovery's strong performance and positive outlook.
InvestingPro Insights
Energy Recovery, Inc. (NASDAQ:ERII) has shown strong financial performance and market positioning, as evidenced by recent InvestingPro data and tips. The company's market capitalization stands at $1.12 billion, reflecting its significant presence in the water and energy efficiency sector.
One of the standout metrics is ERII's impressive gross profit margin of 66.13% for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins," indicating efficient cost management and strong pricing power in its market segments.
Additionally, ERII has demonstrated solid revenue growth, with a 19.05% increase over the last twelve months. This growth trajectory is particularly relevant in the context of Rodney Clemente's recent stock sales, as it suggests the company's products, including those in the water segment that Clemente oversees, are gaining traction in the market.
However, investors should note that ERII is trading at a relatively high P/E ratio of 57.46, which an InvestingPro Tip flags as "trading at a high earnings multiple." This valuation metric suggests that the market has high expectations for future growth, which aligns with the company's recent performance but also implies higher risk.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Energy Recovery, Inc., providing a more comprehensive view of the company's financial health and market position.
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