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

Key Points

• Aehr Test Systems stock gapped down — after closing at $88.48 it opened at $81.36 and last traded around $82.24 with about 841,663 shares changing hands.
• Analysts are mixed with a "Hold" consensus — three Buy, one Hold and one Sell produce an average rating of "Hold" and an average price target of $68.00.
• Fundamentals and insider activity raise caution — the company has negative profitability metrics (P/E -215.46, negative net margin) despite a slight EPS beat, and insiders sold 382,184 shares worth roughly $28.36 million in the last quarter.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $88.48, but opened at $81.36. Aehr Test Systems shares last traded at $82.2380, with a volume of 841,663 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Lake Street Capital reaffirmed a "buy" rating on shares of Aehr Test Systems in a research note on Wednesday, April 8th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Aehr Test Systems in a research note on Monday, April 20th. Wall Street Zen raised shares of Aehr Test Systems from a "strong sell" rating to a "sell" rating in a research note on Saturday, April 11th. Craig Hallum raised Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 price target on the stock in a research report on Wednesday, April 8th. Finally, William Blair raised Aehr Test Systems from a "market perform" rating to an "outperform" rating in a research report on Monday, March 2nd. Three equities 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 company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $68.00.

Aehr Test Systems Stock Performance

The firm has a market capitalization of $2.57 billion, a P/E ratio of -215.46 and a beta of 2.28. The firm's 50-day moving average is $50.55 and its 200 day moving average is $33.77.

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

Insider Buying and Selling

In other news, VP Alistair N. Sporck sold 2,000 shares of the stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $93.50, for a total value of $187,000.00. Following the completion of the sale, the vice president owned 5,177 shares of the company's stock, valued at approximately $484,049.50. This represents a 27.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Laura Oliphant sold 4,665 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $85.59, for a total value of $399,277.35. The SEC filing for this sale provides additional information. Insiders have sold a total of 382,184 shares of company stock worth $28,362,244 in the last quarter. 6.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Aehr Test Systems

A number of institutional investors have recently made changes to their positions in AEHR. State of Alaska Department of Revenue acquired a new position in shares of Aehr Test Systems in the fourth quarter valued at about $377,000. Vanguard Group Inc. grew its stake in shares of Aehr Test Systems by 2.9% in the third quarter. Vanguard Group Inc. now owns 2,288,190 shares of the semiconductor company's stock valued at $68,897,000 after acquiring an additional 65,444 shares in the last quarter. KLCM Advisors Inc. grew its stake in shares of Aehr Test Systems by 200.0% in the third quarter. KLCM Advisors Inc. now owns 75,000 shares of the semiconductor company's stock valued at $2,258,000 after acquiring an additional 50,000 shares in the last quarter. HighTower Advisors LLC grew its stake in shares of Aehr Test Systems by 485.1% in the third quarter. HighTower Advisors LLC now owns 78,340 shares of the semiconductor company's stock valued at $2,359,000 after acquiring an additional 64,950 shares in the last quarter. Finally, William Blair Investment Management LLC acquired a new position in shares of Aehr Test Systems in the third quarter valued at about $26,920,000. Institutional investors 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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