Energy Recovery, Inc. (NASDAQ: ERII) disclosed a director-level stock sale this week when Rodney Clemente, the company's Senior Vice President for Water, sold 20,568 shares of common stock on March 4, 2026, a Form 4 filed with the Securities and Exchange Commission shows. The transaction generated $218,308 in gross proceeds, with the reported sale price averaging $10.614 per share.
The filing specifies that the per-share prices for the individual trades ranged between $10.23 and $10.80. The disposition was carried out under a pre-arranged Rule 10b5-1 trading plan. After completing the sale, Clemente directly holds 116,008 shares of Energy Recovery.
The sale took place as Energy Recovery shares are trading close to their 52-week low of $9.59; the stock has declined roughly 35% over the past year. Trading following the company's recent results showed a modest uptick in the aftermarket, suggesting some investors may have expected the challenges reflected in the results.
Financial results reported for the fourth quarter of 2025 were below consensus estimates. Energy Recovery recorded earnings per share of $0.53, missing the anticipated $0.64. Revenue for the quarter was $66.9 million, short of the $82.59 million analysts had forecast.
Management provided a 2026 revenue guide in a range between $115 million and $140 million. That guidance fell short of the average analyst estimate of $165 million. The company also said it will exit its carbon dioxide retail grocery business, a segment that had been part of its operations.
In response to the results and the revised guidance, Freedom Capital Markets lowered its price target on Energy Recovery from $18.20 to $13.00 but left its rating at Buy. The firm cited uncertainties around the timing of megaprojects as the reason for reducing the target.
Separately, analysis available through InvestingPro suggests that the stock may be undervalued at current levels, with technical indicators such as the relative strength index (RSI) indicating the shares are in oversold territory. The platform notes that detailed Pro Research coverage is available for ERII along with more than 1,400 other U.S. equities for subscribers seeking deeper analysis.
Summary
Rodney Clemente sold 20,568 Energy Recovery shares on March 4, 2026, for a total of $218,308 under a Rule 10b5-1 plan. The company reported fourth-quarter 2025 earnings and revenue that missed forecasts, issued a 2026 revenue range below analyst expectations, and announced an exit from its carbon dioxide retail grocery business. An analyst lowered the price target while maintaining a Buy rating, and market analysis indicates the stock may be oversold.
Key points
- Clemente sold 20,568 shares at prices between $10.23 and $10.80 on March 4, 2026, for $218,308 total; he now holds 116,008 shares directly.
- Energy Recovery reported Q4 2025 EPS of $0.53 versus an expected $0.64 and revenue of $66.9 million versus expected $82.59 million.
- 2026 revenue guidance of $115 million to $140 million missed the average analyst estimate of $165 million; Freedom Capital Markets reduced its price target from $18.20 to $13.00 but kept a Buy rating.
Risks and uncertainties
- Execution risk and timing uncertainty for large-scale projects - cited by the analyst as a reason for lowering the price target, which can affect revenue realization and investor expectations.
- Revenue and earnings shortfalls - the company missed both EPS and revenue estimates in Q4 2025, creating uncertainty around near-term financial performance.
- Strategic exit from the carbon dioxide retail grocery business - the implications for future revenue mix and margins are unclear from the information provided.