Form 4: Energy Recovery CLO Sells Shares Under 10b5-1 Plan

Energy Recovery's Chief Legal Officer, William Yeung, reported multiple sales and tax-related dispositions of common stock in late January and early February 2026, primarily under a Rule 10b5-1 trading plan.

Summary

• William Yeung, Chief Legal Officer of Energy Recovery, Inc., reported multiple transactions involving the company's common stock.
• On January 28, 2026, Yeung sold 7,271 shares of common stock at a price of $14.55 per share.
• On January 30, 2026, 1,003 shares and 8,622 shares were disposed of at $14.65 and $14.30 per share, respectively, to satisfy tax obligations incident to the vesting of securities.
• On February 2, 2026, an additional 729 shares of common stock were sold at a price of $14.46 per share.
• All reported sales transactions were effected pursuant to a pre-arranged Rule 10b5-1 trading plan.
• Following these transactions, William Yeung directly beneficially owns 79,744 shares of common stock and indirectly owns 5,568 shares through his spouse.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. While it represents a reduction in insider ownership, the transactions were executed under a Rule 10b5-1 plan, suggesting pre-scheduled sales rather than a reaction to new information.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating they were not based on new, non-public information and were scheduled in advance.

Negatives

• A reduction in the direct beneficial ownership of common stock by a key executive, William Yeung, following these transactions.

Risks

• Potential for market misinterpretation of insider selling, even when pre-planned, which could lead to unwarranted negative sentiment.
• Reduced alignment of a key executive's personal equity holdings with shareholder interests, although the remaining holdings are substantial.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: A minor reduction in direct insider ownership by a key executive, which could be perceived neutrally given the 10b5-1 plan, but still represents a decrease in management's direct equity stake.

Key Dates

Keywords

Energy Recovery, ERII, Insider Trading, Form 4, William Yeung, Stock Sale, 10b5-1 Plan, Chief Legal Officer, Common Stock