Boston, MA 09/05/2014 (wallstreetpr) – One of the major shareholders of Energy Recovery, Inc. (NASDAQ:ERII), Lorentzen Ole Peter, had resorted to buying a significant number of shares of the company indirectly to improve his holding. This is the first buying activity by the insiders in the last three-month period. Does this indicate a revival of fortunes in the cards as far as the stock performance is concerned?
Buys Shares
Lorzenten Ole Peter had indirectly acquired 735K shares on Wednesday, the company said in a filing of Form 4 with the Securities and Exchange Commission. The Director, who comes under the 10% owner category, had purchased the shares at an average cost of $4.375 by shelling out approximately $3.21 million.
The insider had paid a premium of 21.5% over the 52-week low price of $3.6. However, the Director’s indirect acquisition of shares represented 43.6% discount to the yearly high price of $7.75. As a result of the latest purchase, the insider’s holding got boosted to about 7.93 million shares in the company. This has the potential to be termed as having confidence in the company’s performance.
Before the latest transaction, the previous acquisition of shares by an insider had happened on May 30 when Energy RecoveryEnergy Recovery, Inc. (NASDAQ:ERII) Director Trempont Dominique had purchased 7,018 shares at the rate of $5.15 to improve his holding to about 420K shares, data from Nasdaq indicated.
Three-Month And One-Year Activities
There were only two transactions of insider activities in the last three-month period with one each relating to buying and selling of shares. Energy Recovery, Inc. (NASDAQ:ERII) Director Johnnessen Fred Olav had sold 19.5K shares through non-open market on August 12 at an average cost of $4.24. He was still holding 850K shares after the sale. The buying activity was the recent one on September 3. As a result, there was a net buying of 715.5K shares by the insiders.
Similarly, of the 19 transactions in the last one-year period, 13 related to buying while six meant for selling activities. While 2.01 million shares were purchased by the insiders, nearly 350K shares were sold by them. Thus, there was a net buying activity of 1.66 million shares in the last one-year period.
