Options Exercise Activity Initiated By Michael S Mancini At Energy Recovery

Disclosed in a recent SEC filing on August 7, Mancini, Chief Financial Officer at Energy Recovery ERII, made a noteworthy transaction involving the exercise of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Mancini, Chief Financial Officer at Energy Recovery in the Industrials sector, exercised stock options for 0 shares of ERII stock. The exercise price of the options was $0.0 per share.

The Thursday morning market activity shows Energy Recovery shares up by 0.31%, trading at $16.0. This implies a total value of $0 for Mancini's 0 shares.

Unveiling the Story Behind Energy Recovery

Energy Recovery Inc is an engineering-driven technology company. It is engaged in engineering, designing, manufacturing and supplying solutions that make industrial processes more efficient and sustainable. The company operates in three segments, Water, Emerging Technologies and Corporate. It offers energy recovery devices (ERDs) and pumps as well as related products and services to the global reverse osmosis desalination market. The company derives a majority of the revenue from the Water segment. Geographically, the company operates in the U.S. and other international countries.

Energy Recovery: A Financial Overview

Revenue Growth: Energy Recovery's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 31.25%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: With a high gross margin of 64.58%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Energy Recovery's EPS reflects a decline, falling below the industry average with a current EPS of -0.01.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.06.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: Energy Recovery's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 45.57.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.95 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 36.76, Energy Recovery demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Delving Into the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Energy Recovery's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.