Aehr Test Systems (NASDAQ:AEHR) Shares Down 10.9% - Should You Sell?

Key Points

• Aehr Test Systems shares declined by 10.9%, trading between $22.90 and $23.10, with a significant drop in trading volume compared to average levels.
• Analysts have generally issued negative ratings for AEHR, with reports indicating a downgrade to "hold" and two "sell" ratings, resulting in a consensus rating of "sell" and a target price of $24.00.
• The company reported a loss with a negative net margin of 11.71% and revenue of $11 million for the quarter, falling short of analyst estimates of $13.69 million.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) was down 10.9% during mid-day trading on Wednesday . The stock traded as low as $22.90 and last traded at $23.10. Approximately 955,572 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 1,337,608 shares. The stock had previously closed at $25.92.

Wall Street Analyst Weigh In

Several analysts recently issued reports on AEHR shares. Craig Hallum downgraded shares of Aehr Test Systems from a "buy" rating to a "hold" rating and set a $24.00 price target for the company. in a research report on Tuesday, October 7th. Weiss Ratings reissued a "sell (d)" rating on shares of Aehr Test Systems in a research report on Wednesday, October 8th. Finally, Zacks Research cut Aehr Test Systems from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 9th. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Aehr Test Systems has a consensus rating of "Sell" and a consensus target price of $24.00.

Aehr Test Systems Price Performance

The company has a market cap of $707.48 million, a PE ratio of -107.24 and a beta of 2.47. The company has a fifty day moving average price of $26.30 and a 200 day moving average price of $17.00.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last issued its quarterly earnings data on Monday, October 6th. The semiconductor company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01. Aehr Test Systems had a negative return on equity of 2.41% and a negative net margin of 11.71%.The company had revenue of $11.00 million during the quarter, compared to analyst estimates of $13.69 million. During the same quarter in the previous year, the firm earned $0.07 earnings per share. As a group, sell-side analysts predict that Aehr Test Systems will post 0.1 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Laura Oliphant sold 5,000 shares of the business's stock in a transaction that occurred on Friday, July 25th. The stock was sold at an average price of $21.50, for a total value of $107,500.00. Following the completion of the sale, the director owned 7,665 shares in the company, valued at $164,797.50. The trade was a 39.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Fariba Danesh sold 9,000 shares of the business's stock in a transaction that occurred on Thursday, October 9th. The stock was sold at an average price of $24.79, for a total value of $223,110.00. Following the completion of the sale, the director owned 16,643 shares of the company's stock, valued at $412,579.97. The trade was a 35.10% decrease in their position. The disclosure for this sale can be found here. Insiders own 6.80% of the company's stock.

Institutional Trading of Aehr Test Systems

A number of hedge funds have recently bought and sold shares of AEHR. GAMMA Investing LLC lifted its position in Aehr Test Systems by 1,753.1% in the 1st quarter. GAMMA Investing LLC now owns 7,079 shares of the semiconductor company's stock worth $52,000 after buying an additional 6,697 shares during the last quarter. Rhumbline Advisers lifted its position in Aehr Test Systems by 5.7% in the first quarter. Rhumbline Advisers now owns 40,212 shares of the semiconductor company's stock valued at $293,000 after purchasing an additional 2,165 shares during the last quarter. XTX Topco Ltd bought a new stake in Aehr Test Systems in the first quarter valued at approximately $267,000. Charles Schwab Investment Management Inc. lifted its position in Aehr Test Systems by 4.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 225,923 shares of the semiconductor company's stock valued at $1,647,000 after purchasing an additional 10,327 shares during the last quarter. Finally, Invesco Ltd. lifted its position in Aehr Test Systems by 88.8% in the first quarter. Invesco Ltd. now owns 30,226 shares of the semiconductor company's stock valued at $220,000 after purchasing an additional 14,219 shares during the last quarter. Institutional investors own 69.69% of the company's stock.

About Aehr Test Systems

Aehr Test Systems provides test solutions for testing, burning-in, and semiconductor devices in wafer level, singulated die, and package part form, and installed systems worldwide. Its product portfolio includes FOX-XP and FOX-NP systems that are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize range of devices, including silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices.

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