Energy Recovery , Inc. (NASDAQ:ERII) director Arve Hanstveit recently sold a significant amount of company stock, according to the latest SEC filings. The transaction, which occurred on May 8, 2024, involved the sale of 35,000 shares at an average price of $13.53 per share, resulting in a total value of approximately $473,550.
The reported sales price represents a weighted average, with individual transactions ranging from $13.437 to $13.699 per share. Hanstveit has committed to providing detailed information about the number of shares sold at each price point if requested by the SEC staff, Energy Recovery, Inc., or any shareholder of the company.
Following the sale, Hanstveit still maintains a substantial holding in the company, with 772,055 shares remaining in his direct ownership. Additionally, he holds indirect ownership through the Natasha Hanstveit Irrevocable Trust and the Sophie Hanstveit Irrevocable Trust, each containing 60,000 shares. As the sole trustee, Hanstveit exercises exclusive voting and investment power over these shares.
The recent transaction is part of a regular disclosure by company insiders, providing transparency to investors and the market about their stock transactions. Energy Recovery, Inc., based in San Leandro, California, is known for its specialization in special industry machinery.
Investors often keep a close eye on insider trading activities as they can provide insights into the executives' confidence in the company's future prospects. However, it is important to note that such transactions can occur for various reasons and may not necessarily be indicative of the company's operational performance.
The SEC filing also included a Power of Attorney, which indicates that Arve Hanstveit has appointed a true and lawful attorney-in-fact for the purposes of executing Forms ID, 3, 4, and 5, as well as any other forms required under Section 16 of the Securities Exchange Act of 1934, as amended.
InvestingPro Insights
Energy Recovery, Inc. (NASDAQ:ERII) has caught the attention of investors not only due to recent insider trading activity but also because of its financial health and market performance. According to InvestingPro, the company holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability. Additionally, Energy Recovery boasts impressive gross profit margins, with the last twelve months as of Q1 2024 showing a margin of 67.74%. This indicates strong operational efficiency and a solid ability to generate profits from its sales.
The market cap of Energy Recovery stands at 800.33 million USD, reflecting the company's valuation in the market. Despite some analysts revising their earnings downwards for the upcoming period, the company's P/E ratio is currently at 40.46, suggesting investors are expecting future earnings growth. Furthermore, with a PEG ratio at 0.42, the company's price is potentially undervalued relative to its expected earnings growth, making it an interesting prospect for value investors.
For those interested in further insights, there are additional InvestingPro Tips available, which include analysis on the company's valuation multiples and profitability predictions. For example, while the company is trading at high earnings, EBIT, EBITDA, and revenue valuation multiples, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. It's worth noting that Energy Recovery does not pay a dividend to shareholders, which may influence investment decisions for income-focused investors.
For a deeper dive into Energy Recovery's financials and to access more exclusive tips, investors can visit https://www.investing.com/pro/ERII. There are 12 additional InvestingPro Tips available, offering nuanced perspectives on the company's financial health and future outlook. To enrich your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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