Form 4: Energy Recovery CEO Sells Shares for Tax Obligations

Energy Recovery, Inc. CEO David W. Moon reported the disposition of 17,160 common shares at $14.30 each to cover tax obligations related to vesting securities.

Summary

• David W. Moon, President and CEO and Director of Energy Recovery, Inc. (ERII), reported a transaction involving company common stock.
• On January 30, 2026, Moon disposed of 17,160 shares of common stock.
• The disposition was for the payment of tax obligations incident to the vesting of securities, in accordance with Rule 16b-3(e).
• The shares were disposed of at a price of $14.30 per share.
• Following this transaction, Moon beneficially owns 151,257 shares of common stock directly.
• The transaction was made pursuant to a Rule 10b5-1(c) plan, indicating it was pre-scheduled.
• Moon has granted Michael Mancini and William Yeung power of attorney to prepare and execute Section 16 filings on his behalf, effective March 14, 2025.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as it represents a routine, pre-scheduled transaction by an insider to cover tax liabilities associated with equity vesting, rather than a discretionary sale or purchase.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

StockSavvy.ai notes that insider transactions, particularly those related to tax obligations or pre-arranged 10b5-1 plans, are common across all industries and typically do not reflect a change in management's outlook on the company's fundamentals. This transaction is specific to Energy Recovery, Inc. and does not indicate broader industry trends.

Corporate Governance

Stakeholder Impact

• Minimal direct impact on shareholders, as this is a routine, pre-scheduled transaction for tax purposes by an executive.
• No direct impact on employees, customers, suppliers, or creditors is indicated by this filing.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-scheduled disposition of shares by the CEO to cover tax obligations related to vesting equity. Such transactions, especially those under a 10b5-1 plan, are generally not indicative of a change in management's confidence in the company's future prospects and therefore do not warrant a change in investment recommendation based solely on this filing. The transaction is neutral in its implications for the stock's fundamental value.

Keywords

Energy Recovery Inc, ERII, David W. Moon, Insider Transaction, Form 4, Stock Sale, Tax Obligation, CEO, Director, 10b5-1 Plan