Form 4: Energy Recovery SVP Sells Stock via 10b5-1 Plan

Energy Recovery's SVP of Water, Rodney Clemente, sold 724 shares of common stock for $14.59 per share under a pre-arranged trading plan.

Summary

• Rodney Clemente, the Senior Vice President of Water at Energy Recovery, Inc., reported the sale of 724 shares of the company's common stock.
• The transaction occurred on February 5, 2026, with shares sold at a price of $14.59 per share.
• This sale was executed in accordance with a Rule 10b5-1 trading plan, which allows insiders to set up a pre-scheduled plan to buy or sell company stock.
• Following this transaction, Rodney Clemente's direct beneficial ownership in Energy Recovery, Inc. common stock stands at 90,950 shares.
• A Power of Attorney was granted by Rodney Clemente on March 14, 2025, designating David Moon, Michael Mancini, and William Yeung as attorneys-in-fact for the purpose of preparing and executing Section 16 filings.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. The sale is a small percentage of the insider's total holdings and was conducted under a pre-arranged 10b5-1 plan, which typically mitigates negative interpretations of insider selling.

Positives

• The transaction was conducted under a Rule 10b5-1 trading plan, indicating a pre-scheduled sale rather than a reaction to recent market events or non-public information.

Negatives

• An insider sale, even if pre-planned, can sometimes be perceived negatively by the market as it reduces insider ownership, though the amount in this instance is relatively small.

Risks

• No specific company-related risks are mentioned in this Form 4 filing.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine insider sales, especially those executed under a 10b5-1 plan, are common and typically do not reflect a change in the company's fundamental outlook or broader industry trends. The transaction size is relatively small compared to the total shares beneficially owned by the insider.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal direct impact due to the small size and pre-planned nature of the sale.
• Employees, Customers, Suppliers, Creditors: No direct impact from this insider transaction.

Key Dates

Recommendation

This Form 4 filing reports a routine, pre-scheduled insider sale of a relatively small number of shares. It does not provide sufficient information to alter a fundamental investment thesis or warrant a strong buy or sell recommendation. Investors should consider this a neutral event and focus on broader company fundamentals and strategic developments.

Keywords

Energy Recovery, ERII, insider trading, Form 4, stock sale, Rodney Clemente, 10b5-1 plan, SVP Water, beneficial ownership