Have Energy Recovery, Inc. (NASDAQ:ERII) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
September 20, 2021
NasdaqGS:ERII
Source: Shutterstock

We wouldn't blame Energy Recovery, Inc. (NASDAQ:ERII) shareholders if they were a little worried about the fact that Ole Peter Lorentzen, a company insider, recently netted about US$31m selling shares at an average price of US$20.81. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Energy Recovery

The Last 12 Months Of Insider Transactions At Energy Recovery

In fact, the recent sale by Ole Peter Lorentzen was the biggest sale of Energy Recovery shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$19.47. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Energy Recovery didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:ERII Insider Trading Volume September 20th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Energy Recovery insiders own 14% of the company, worth about US$156m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Energy Recovery Insiders?

An insider hasn't bought Energy Recovery stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Energy Recovery. You'd be interested to know, that we found 2 warning signs for Energy Recovery and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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