Transaction overview
Energy Recovery, Inc. (NASDAQ: ERII) reported that Rodney Clemente, the company’s Senior Vice President for Water, sold 724 shares of common stock on February 5, 2026. The shares were sold at $14.59 each, producing proceeds of $10,563. According to the filing, the sale was executed under a Rule 10b5-1 trading plan. After the disposition, Clemente is recorded as directly holding 90,950 shares of Energy Recovery.
Market context
The company’s stock is trading at $15.81, representing an 8.4% increase versus the $14.59 price at which the insider sale occurred. InvestingPro’s analysis included in the company’s profile highlights a gross profit margin of 66.64% and indicates the firm carries more cash than debt on its balance sheet. InvestingPro also notes that Energy Recovery appears undervalued according to its Fair Value estimate. The platform lists an upcoming earnings announcement expected on February 25.
Recent operating and analyst developments
Separately, Energy Recovery released third-quarter 2025 results that Freedom Capital described as broadly in line with the company’s internal expectations. The earnings period included some project-timing headwinds, according to the report. Following the results, Freedom Capital Markets reduced its price target on Energy Recovery to $18.20 from $20.00, while retaining a Buy rating on the shares. These moves reflect the analyst’s assessment of near-term execution and timing issues while maintaining a constructive stance on the name.
What this means for investors
The disclosed insider sale was performed through an established 10b5-1 plan and did not change Clemente’s substantial direct ownership stake. public metrics cited by InvestingPro point to robust gross margins and a balance sheet with more cash than debt, and an InvestingPro Fair Value assessment that flags potential undervaluation. At the same time, recent operational timing challenges and a lowered analyst price target signal areas for investors to watch ahead of the company’s next earnings announcement.
Key points
- SVP Rodney Clemente sold 724 shares on February 5, 2026, at $14.59 per share under a Rule 10b5-1 plan, totaling $10,563.
- InvestingPro reports a gross profit margin of 66.64% and a balance sheet with more cash than debt, and suggests the company may be undervalued based on its Fair Value estimate.
- Freedom Capital Markets lowered its price target to $18.20 from $20.00 after Energy Recovery’s third-quarter 2025 results but kept a Buy rating; the company cited project-timing headwinds for the quarter.
Risks and uncertainties
- Project-timing headwinds noted in the third-quarter 2025 results could affect near-term revenue recognition and operational performance.
- Analyst adjustments to price targets - in this case a reduction from $20.00 to $18.20 - indicate ongoing uncertainty about the company’s near-term trajectory.
- InvestingPro’s Fair Value indication of undervaluation reflects a model-driven view, which does not eliminate the risk of market or execution volatility ahead of the upcoming earnings report expected on February 25.
Investors assessing Energy Recovery should consider the combination of insider activity, stated financial metrics, and recent analyst commentary as they prepare for the next earnings disclosure.