Insider Trading March 9, 2026

Energy Recovery Director Disposes of $534,399 in Shares as Company Faces Revenue Headwinds

Arve Hanstveit trimmed his stake in two transactions following a weak quarter and a below-consensus 2026 revenue outlook

By Nina Shah ERII
Energy Recovery Director Disposes of $534,399 in Shares as Company Faces Revenue Headwinds
ERII

Director Arve Hanstveit reported sales totaling $534,399 of Energy Recovery, Inc. (NASDAQ: ERII) common stock in two Form 4 transactions filed with the U.S. Securities and Exchange Commission. The sales, executed March 5 and March 6, 2026, reduced his direct holdings to 575,220 shares. The insider move comes amid a 23% share-price decline over six months and after the company missed Q4 2025 expectations and issued a revenue guide below the average analyst estimate.

Key Points

  • Director Arve Hanstveit sold a combined $534,399 of Energy Recovery stock in two transactions on March 5 and March 6, 2026, reducing his direct holdings to 575,220 shares.
  • Energy Recovery reported Q4 2025 EPS of $0.53, missing the $0.64 consensus by 17.19%, and revenue of $66.9 million, short of the $82.59 million forecast by 19%.
  • The company issued a 2026 revenue guide of $115 million to $140 million, below the average analyst estimate of $165 million; Freedom Capital Markets cut its price target to $13.00 from $18.20 but maintained a Buy rating.

Energy Recovery, Inc. (NASDAQ: ERII) disclosed a pair of insider sales by director Arve Hanstveit that together total $534,399, according to a Form 4 filing submitted to the Securities and Exchange Commission.

The first transaction occurred on March 5, 2026, when Hanstveit sold 38,418 shares of common stock at a weighted average price of $10.71 per share, with trade prices listed in the filing as ranging from $10.71 to $10.7109. Following that sale, Hanstveit was recorded as directly owning 586,802 shares of Energy Recovery.

The second sale was reported on March 6, 2026, when he disposed of 11,582 shares at $10.615 per share. After that transaction, his direct ownership stood at 575,220 shares. William Yeung, acting as attorney-in-fact for Arve Hanstveit, signed the Form 4 on the director’s behalf.


These insider sales come as Energy Recovery’s stock has fallen approximately 23% over the last six months. The filing and market context were accompanied by a note that InvestingPro’s analysis indicates the shares may be undervalued relative to its Fair Value assessment, and that more detailed analysis and an additional 13 ProTips for ERII are available on InvestingPro for investors seeking deeper information.


Separately, Energy Recovery reported fourth-quarter 2025 results that highlighted near-term challenges. The company posted earnings per share of $0.53 for the quarter, missing the consensus expectation of $0.64 by 17.19%. Revenue for the period was $66.9 million, short of the $82.59 million forecast by 19%.

Management provided a 2026 revenue outlook in a range of $115 million to $140 million, which sits well below the average analyst estimate of $165 million. The company also said it will exit its carbon dioxide retail grocery business as part of its strategic adjustments.

Market analysts reacted to the company’s report and outlook. Freedom Capital Markets reduced its price target on Energy Recovery to $13.00 from $18.20, while retaining a Buy rating. The firm cited the company’s flat year-over-year revenue, attributing that outcome substantially to the timing of megaprojects.


Investor responses to insider transactions can vary, and the filings provide a transparent record of director activity. In this instance, Hanstveit’s sales were disclosed promptly via the required SEC filing, and the subsequent public-facing financial updates and analyst commentary frame the company’s current operating and market pressures.

For market participants looking for expanded commentary and tactical observations on ERII, the filing points to further paid analysis and additional proprietary tips available through InvestingPro.

Risks

  • Revenue risk - The company’s 2026 revenue guidance of $115 million to $140 million sits well below the average analyst estimate of $165 million, indicating uncertainty in near-term top-line performance.
  • Execution and timing risk - Management cited megaproject timing as a driver behind flat year-over-year revenue, suggesting project schedule variability could affect future results.
  • Market and investor sentiment risk - Shares have fallen roughly 23% over the last six months, and insider selling may influence investor perception of near-term prospects.

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