Insider Trading March 6, 2026

Energy Recovery CTO Disposes of 272 Shares Amid Weak Results and Lower Guidance

Natarajan Ramanan sells roughly $2,875 of stock as the company reports missed Q4 results and trims near-term revenue outlook

By Leila Farooq ERII
Energy Recovery CTO Disposes of 272 Shares Amid Weak Results and Lower Guidance
ERII

Energy Recovery Chief Technology Officer Natarajan Ramanan sold 272 shares of the company’s common stock on March 5, 2026, for $10.57 per share, a transaction valued at $2,875. The sale was filed on a Form 4 with the Securities and Exchange Commission and was executed under a power of attorney, with William Yeung signing on Ramanan’s behalf. The transaction comes after the company reported fourth-quarter 2025 results that fell short of expectations and issued revenue and adjusted EPS guidance below analyst averages.

Key Points

  • CTO Natarajan Ramanan sold 272 shares on March 5, 2026, at $10.57 per share, totaling $2,875; transaction executed under a power of attorney with William Yeung signing on his behalf.
  • Energy Recovery missed fourth-quarter 2025 expectations - EPS $0.53 versus $0.64 expected, and revenue $66.9 million versus $82.59 million expected - and issued full-year 2026 guidance below analyst averages.
  • The company plans to exit its carbon dioxide retail grocery business; Freedom Capital Markets cut its price target from $18.20 to $13.00 but maintained a Buy rating, citing uncertainties around megaproject timing.

Natarajan Ramanan, the Chief Technology Officer at Energy Recovery, Inc. (NASDAQ:ERII), disposed of 272 shares of common stock on March 5, 2026, according to a Form 4 filing with the Securities and Exchange Commission. The shares were sold at $10.57 each, producing a total transaction value of $2,875.

The filing indicates the sale was carried out under a power of attorney, with William Yeung executing the transaction on Ramanan’s behalf. Following the sale, Ramanan is recorded as directly owning 52,565 shares of Energy Recovery.


The insider sale occurs against a backdrop of recent operating and financial developments at Energy Recovery. In its fourth-quarter 2025 results the company reported earnings per share of $0.53, below the consensus expectation of $0.64. Revenue for the quarter was $66.9 million, which missed the anticipated $82.59 million figure.

For full-year 2026 the company issued a revenue outlook in the range of $115 million to $140 million. That guidance is below the average analyst estimate of $165 million. Energy Recovery also provided adjusted earnings-per-share guidance of $0.50 to $0.70, versus the analyst projection of $0.88.

In related strategic moves, Energy Recovery said it will exit its carbon dioxide retail grocery business. The company’s updated results and outlook prompted Freedom Capital Markets to reduce its price target for Energy Recovery from $18.20 to $13.00, while keeping a Buy rating in place. Freedom cited uncertainties around the timing of megaprojects as a key consideration in its revision.


Taken together, the insider transaction, the quarterly shortfalls, downward guidance and the analyst price-target cut illustrate a period of adjustment for Energy Recovery. The company is managing weaker near-term demand and recalibrating its business footprint as it steps away from the carbon dioxide retail grocery operation.

Market indicators show the stock trading close to its 52-week low of $9.59 and reflecting a 32% decline over the past year, context that surrounds this insider sale and the company’s recent financial disclosures.


Given the limited information in the filings and public statements, the precise motivations behind the individual sale were not disclosed beyond the mechanics noted on the Form 4. The company’s reported results, guidance and strategic actions remain the principal publicly available signals for investors and analysts assessing Energy Recovery’s near-term trajectory.

Risks

  • Revenue and adjusted EPS guidance for 2026 are below consensus estimates, introducing execution and forecast risk for the company and affecting industrial and capital-project related markets.
  • Uncertainties around the timing of megaprojects could lead to uneven demand and revenue realization, creating volatility in project-dependent sectors and for suppliers.
  • The stock is trading near its 52-week low and has declined 32% over the past year, reflecting market sensitivity to the company’s near-term financial performance and strategic shifts.

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