This Insider Has Just Sold Shares In Energy Recovery

Anyone interested in Energy Recovery, Inc. (NASDAQ:ERII) should probably be aware that the Independent Director, Arve Hanstveit, recently divested US$474k worth of shares in the company, at an average price of US$13.53 each. On the bright side, that sale was only 3.8% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Energy Recovery

The Last 12 Months Of Insider Transactions At Energy Recovery

In the last twelve months, the biggest single sale by an insider was when the Director, Yu-Lang Mao, sold US$2.2m worth of shares at a price of US$18.02 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.96). So it may not tell us anything about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 42.60k shares worth US$692k. But they sold 295.85k shares for US$5.5m. In total, Energy Recovery insiders sold more than they bought over 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!

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Insider Ownership Of Energy Recovery

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. Insiders own 2.4% of Energy Recovery shares, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Energy Recovery Insiders?

The insider sales have outweighed the insider buying, at Energy Recovery, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Energy Recovery is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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 1 warning sign for Energy Recovery and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.