Aehr Test Systems (NASDAQ:AEHR) Shares Down 6.4% - Should You Sell?

Key Points

• Aehr Test Systems' shares fell by 6.4%, closing at $28.91 after hitting a low of $29.15, significantly lower than the previous close of $30.88.
• The company recently reported quarterly revenue of $14.10 million, missing analysts' estimates of $14.83 million, while managing to exceed earnings per share expectations.
• Insider trading has shown a significant amount of selling, with directors reducing their ownership by over 20%, indicating potential concerns among insiders about the company's future performance.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) fell 6.4% during mid-day trading on Friday . The company traded as low as $29.15 and last traded at $28.91. 399,787 shares traded hands during trading, a decline of 68% from the average session volume of 1,244,941 shares. The stock had previously closed at $30.88.

Aehr Test Systems Price Performance

The firm has a market capitalization of $907.46 million, a PE ratio of -231.46 and a beta of 2.54. The stock has a 50-day moving average price of $22.90 and a 200-day moving average price of $14.49.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last announced its earnings results on Tuesday, July 8th. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.02) by $0.01. Aehr Test Systems had a negative return on equity of 0.15% and a negative net margin of 6.63%.The business had revenue of $14.10 million for the quarter, compared to analyst estimates of $14.83 million. As a group, equities research analysts predict that Aehr Test Systems will post 0.1 earnings per share for the current fiscal year.

Insider Transactions at Aehr Test Systems

In other Aehr Test Systems news, Director Rhea J. Posedel sold 18,000 shares of the firm's stock in a transaction dated Tuesday, July 22nd. The shares were sold at an average price of $19.83, for a total value of $356,940.00. Following the transaction, the director owned 71,163 shares of the company's stock, valued at $1,411,162.29. This trade represents a 20.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Laura Oliphant sold 5,000 shares of the firm's stock in a transaction dated Friday, July 25th. The stock was sold at an average price of $21.50, for a total transaction of $107,500.00. Following the completion of the transaction, the director directly owned 7,665 shares in the company, valued at $164,797.50. This represents a 39.48% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 26,000 shares of company stock valued at $506,830. Insiders own 6.80% of the company's stock.

Hedge Funds Weigh In On Aehr Test Systems

Large investors have recently bought and sold shares of the business. State of Wyoming bought a new position in Aehr Test Systems in the second quarter worth about $28,000. Quantbot Technologies LP bought a new position in Aehr Test Systems in the first quarter worth about $31,000. GAMMA Investing LLC lifted its holdings in Aehr Test Systems by 1,753.1% in the first quarter. GAMMA Investing LLC now owns 7,079 shares of the semiconductor company's stock worth $52,000 after acquiring an additional 6,697 shares during the last quarter. CWM LLC lifted its holdings in Aehr Test Systems by 15.1% in the second quarter. CWM LLC now owns 6,062 shares of the semiconductor company's stock worth $78,000 after acquiring an additional 793 shares during the last quarter. Finally, American Century Companies Inc. bought a new position in Aehr Test Systems in the first quarter worth about $86,000. Institutional investors own 69.69% of the company's stock.

Aehr Test Systems Company Profile

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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