Aehr Test Systems (NASDAQ:AEHR) Shares Down 8.7% - Here's Why

Key Points

• Shares fell 8.7% to about $38.77 on Thursday with volume down 72% versus average; the stock has a $1.2 billion market cap while analysts' consensus rating is "Hold" with an average target of $21.
• Aehr beat EPS expectations for the quarter (loss of $0.04 vs. consensus -$0.08) but missed revenue ($9.88M vs. $11.45M) and still posts negative net margin and return on equity.
• Company insiders have been selling recently (director Rhea J. Posedel sold 13,998 shares at ~$30.02; Laura Oliphant sold 4,546 shares at ~$31.40), while institutional investors own roughly 69.7% and insiders hold 6.8%.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) shares fell 8.7% on Thursday . The company traded as low as $38.00 and last traded at $38.7670. 431,436 shares were traded during trading, a decline of 72% from the average session volume of 1,531,582 shares. The stock had previously closed at $42.45.

Wall Street Analyst Weigh In

Several brokerages recently commented on AEHR. Zacks Research raised Aehr Test Systems from a "strong sell" rating to a "hold" rating in a research note on Monday, December 8th. Lake Street Capital began coverage on shares of Aehr Test Systems in a research report on Wednesday, December 17th. They set a "buy" rating on the stock. Weiss Ratings reiterated a "sell (d)" rating on shares of Aehr Test Systems in a research note on Wednesday, January 21st. William Blair raised shares of Aehr Test Systems from a "market perform" rating to an "outperform" rating in a research report on Monday, March 2nd. Finally, Craig Hallum restated a "hold" rating on shares of Aehr Test Systems in a report on Friday, January 9th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Aehr Test Systems presently has a consensus rating of "Hold" and an average target price of $21.00.

Aehr Test Systems Trading Down 7.4%

The stock has a market cap of $1.20 billion, a P/E ratio of -131.05 and a beta of 2.22. The firm's fifty day moving average is $30.46 and its 200 day moving average is $27.04.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last released its quarterly earnings results on Thursday, January 8th. The semiconductor company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.08) by $0.04. The company had revenue of $9.88 million during the quarter, compared to analysts' expectations of $11.45 million. Aehr Test Systems had a negative net margin of 16.63% and a negative return on equity of 4.57%. Research analysts forecast that Aehr Test Systems will post 0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Rhea J. Posedel sold 13,998 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $30.02, for a total value of $420,219.96. Following the completion of the sale, the director directly owned 456,979 shares of the company's stock, valued at approximately $13,718,509.58. This represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Laura Oliphant sold 4,546 shares of the firm's stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $31.40, for a total transaction of $142,744.40. Following the completion of the sale, the director owned 18,432 shares in the company, valued at approximately $578,764.80. The trade was a 19.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 6.80% of the company's stock.

Hedge Funds Weigh In On Aehr Test Systems

Several large investors have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd bought a new position in shares of Aehr Test Systems during the 4th quarter worth about $25,000. Sunbelt Securities Inc. bought a new stake in shares of Aehr Test Systems in the third quarter valued at about $27,000. State of Wyoming acquired a new stake in Aehr Test Systems during the second quarter worth about $28,000. Jones Financial Companies Lllp grew its position in Aehr Test Systems by 3,448.3% during the third quarter. Jones Financial Companies Lllp now owns 1,029 shares of the semiconductor company's stock worth $31,000 after buying an additional 1,000 shares in the last quarter. Finally, RiverPark Advisors LLC bought a new position in Aehr Test Systems during the third quarter valued at about $42,000. 69.69% of the stock is currently owned by institutional investors and hedge funds.

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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