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

Sentiment:

Insider Transaction Report 6 March 2026 6:49 PM

Energy Recovery's SVP of Water, Rodney Clemente, sold 20,568 shares of common stock for approximately $218,300 under a pre-arranged trading plan.

Worse than expectedThe sale of 20,568 shares by a Senior Vice President, even under a 10b5-1 plan, is generally perceived as a negative signal by the market, as it reduces insider ownership and could imply a lack of stronger upside potential from the insider's perspective.

Summary

Rodney Clemente, SVP, Water at Energy Recovery, Inc. (ERII), disposed of 20,568 shares of common stock.
The transaction occurred on March 4, 2026, at a weighted average sales price of $10.614 per share.
The sales price ranged from $10.23 to $10.80 per share.
The total value of the shares sold was approximately $218,300.
Following the transaction, Rodney Clemente directly beneficially owns 116,008 shares of common stock.
The sale was executed pursuant to a Rule 10b5-1 trading plan adopted by the reporting person.
An Exhibit 24 Power of Attorney, dated March 14, 2025, designates David Moon, Michael Mancini, and William Yeung as attorneys-in-fact for Section 16 filings on behalf of Rodney Clemente.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a slightly negative event. While the 10b5-1 plan mitigates the immediate concern of reactive selling, the reduction in insider holdings by a key executive is generally not a positive indicator for investor sentiment.

Negatives

An insider sale, even under a 10b5-1 plan, can sometimes be interpreted by the market as a signal of reduced confidence in the company's near-term prospects, or simply as a diversification move.

Future Outlook

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

Industry Context

StockSavvy.ai notes that insider transactions, particularly sales, are closely watched by investors for signals about a company's health and future outlook. While a 10b5-1 plan indicates a pre-scheduled sale, it still represents an insider reducing their stake, which can be viewed in various ways depending on the broader market and company-specific context.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Delegation of Authority	Rodney Clemente, SVP, Water, executed a Power of Attorney designating David Moon, Michael Mancini, and William Yeung as attorneys-in-fact to prepare and execute Section 16 filings (Forms ID, 3, 4, and 5) on his behalf. This document also explicitly revokes any prior powers of attorney for these purposes.	03/14/2025	Streamlines the process for SEC compliance for the reporting person by delegating administrative tasks to designated individuals within the company, ensuring timely and accurate filings.

Stakeholder Impact

Shareholders: May interpret the insider sale as a signal, potentially influencing their investment decisions. The 10b5-1 plan provides transparency regarding the pre-planned nature of the sale.
Management: The Power of Attorney ensures efficient compliance with SEC reporting requirements for the SVP.

Key Dates

Date	Description
03/14/2025	Date Power of Attorney was executed by Rodney Clemente.
03/04/2026	Date of the reported transaction (sale of common stock).
03/06/2026	Date the Form 4 was signed by the attorney-in-fact.

Recommendation

hold

While an insider sale can be a negative signal, the transaction was executed under a pre-arranged 10b5-1 plan, suggesting it's for personal financial planning rather than a reactive response to new negative information. Without additional context on company performance or other market factors, a 'hold' recommendation is appropriate, advising investors to monitor future company developments and broader market trends.

Keywords

Energy Recovery, ERII, Insider Sale, Form 4, Rodney Clemente, 10b5-1 Plan, SVP Water, Common Stock

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