Aehr Test Systems (NASDAQ:AEHR) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Aehr Test Systems from “sell” to “strong sell,” adding to a mixed analyst picture that still leaves the stock with a consensus Hold rating and an average price target of $68.
• The company recently reported quarterly EPS of -$0.05, beating estimates, but revenue of $10.31 million came in below expectations and profitability remained weak with a negative net margin and return on equity.
• Insiders have been selling shares, including notable sales by a director and an EVP, while institutional investors such as Royal Bank of Canada and JPMorgan have recently increased their holdings.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued to investors on Saturday.

Several other research analysts also recently issued reports on AEHR. Lake Street Capital reissued a "buy" rating on shares of Aehr Test Systems in a research report on Wednesday, April 8th. William Blair upgraded shares of Aehr Test Systems from a "market perform" rating to an "outperform" rating in a research note on Monday, March 2nd. Craig Hallum upgraded shares of Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 target price for the company in a research note on Wednesday, April 8th. Finally, Weiss Ratings upgraded shares of Aehr Test Systems from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $68.00.

Aehr Test Systems Stock Performance

Shares of Aehr Test Systems stock opened at $99.50 on Friday. Aehr Test Systems has a 1 year low of $8.31 and a 1 year high of $108.75. The company has a market capitalization of $3.13 billion, a P/E ratio of -261.84 and a beta of 3.26. The company's fifty day moving average is $64.54 and its two-hundred day moving average is $39.52.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last issued its quarterly earnings data on Tuesday, April 7th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.02. Aehr Test Systems had a negative net margin of 25.23% and a negative return on equity of 7.15%. The company had revenue of $10.31 million for the quarter, compared to the consensus estimate of $10.85 million. As a group, equities analysts expect that Aehr Test Systems will post -0.31 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Laura Oliphant sold 4,665 shares of the firm's stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $85.59, for a total value of $399,277.35. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Alberto Salamone sold 15,000 shares of the firm's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $89.57, for a total transaction of $1,343,550.00. Following the completion of the sale, the executive vice president owned 63,025 shares of the company's stock, valued at $5,645,149.25. This trade represents a 19.22% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 375,005 shares of company stock worth $28,656,178. 6.80% of the stock is currently owned by insiders.

Institutional Trading of Aehr Test Systems

Several hedge funds and other institutional investors have recently made changes to their positions in AEHR. Royal Bank of Canada lifted its stake in shares of Aehr Test Systems by 262.7% in the first quarter. Royal Bank of Canada now owns 50,207 shares of the semiconductor company's stock valued at $365,000 after purchasing an additional 36,364 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Aehr Test Systems by 8.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,225 shares of the semiconductor company's stock valued at $126,000 after purchasing an additional 1,344 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of Aehr Test Systems by 7.9% in the second quarter. JPMorgan Chase & Co. now owns 15,576 shares of the semiconductor company's stock valued at $201,000 after purchasing an additional 1,145 shares during the period. Legal & General Group Plc lifted its stake in shares of Aehr Test Systems by 110.8% in the second quarter. Legal & General Group Plc now owns 6,882 shares of the semiconductor company's stock valued at $89,000 after purchasing an additional 3,617 shares during the period. Finally, Rhumbline Advisers lifted its stake in shares of Aehr Test Systems by 3.1% in the second quarter. Rhumbline Advisers now owns 41,466 shares of the semiconductor company's stock valued at $536,000 after purchasing an additional 1,254 shares during the period. Institutional investors and hedge funds own 69.69% of the company's stock.

Aehr Test Systems Company Profile

Aehr Test Systems develops, manufactures and sells semiconductor test and burn-in equipment used by device manufacturers to ensure quality and reliability of integrated circuits. Its products are designed for wafer-level reliability assessment, functional test and stress screening of memory devices, system-on-chips, optical components and power semiconductors. By focusing on wafer-level burn-in and testing processes, the company helps reduce cost and improve yield for high-volume semiconductor production.

The company's product portfolio includes FOX series wafer probe test and burn-in systems as well as ABTS burn-in ovens.

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