Energy Recovery, Inc. (NASDAQ: ERII) reported an insider sale and a challenging fourth quarter as director Arve Hanstveit disposed of 2,419 shares of common stock on April 6, 2026. The shares were sold at $10.29 each, producing proceeds of $24,891. Since the transaction the stock has traded higher, reaching $10.73, although shares are still down about 31% over the last six months.
Details of the transaction and holdings
The sale was executed to satisfy a margin call by the broker to whom Hanstveit had pledged the shares as collateral for a margin account. After the trade, Hanstveit directly holds 382,509 shares of Energy Recovery. In addition to his direct ownership, he has indirect stakes through two irrevocable trusts: 60,000 shares in the Sophie Hanstveit Irrevocable Trust and 60,000 shares in the Natasha Hanstveit Irrevocable Trust. The Form 4 reporting the transaction was signed by William Yeung, Attorney-in-fact, on behalf of Arve Hanstveit.
Company financials and outlook
Energy Recovery disclosed fourth-quarter 2025 results that reflected a difficult period for the company. Revenue for the quarter totaled $66.9 million, effectively flat year-over-year, and fell short of the forecasted $82.59 million by 19%. Reported earnings per share were $0.53, missing the anticipated $0.64 by 17.19%.
For 2026 the company provided guidance projecting revenue in a range between $115 million and $140 million, below the average analyst estimate of $165 million. Adjusted earnings per share guidance was set between $0.50 and $0.70, compared with analysts expecting $0.88 per share. Management attributed part of the weaker outlook to a planned exit from its carbon dioxide retail grocery business, a strategic step the company announced as it updated guidance.
Analyst reaction
Following the results and guidance, Freedom Capital Markets reduced its price target on Energy Recovery stock from $18.20 to $13.00, while maintaining a Buy rating. The firm pointed to project timing uncertainty as a primary reason for lowering the target.
What is known and what remains unclear
The public filings and company statements provide the transactional details, current ownership positions, quarter results, guidance bands, and the stated reason for the insider sale. The extent to which the announced exit from the carbon dioxide retail grocery business and the project timing uncertainty will affect future operational performance and cash flows was not quantified beyond the provided guidance ranges.