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

Key Points

• Aehr Test Systems shares gapped down significantly, opening at $25.55 after a previous close of $31.65, and last traded at $23.62 with substantial trading volume.
• Analysts have reissued ratings for Aehr Test Systems with a consensus rating of "Reduce" and a price target of $24.00, indicating cautious sentiment among investors.
• Insider trading saw significant activity, with a director selling 18,000 shares, representing a 20.19% decrease in ownership, which could signal management's outlook on the company.

Shares of Aehr Test Systems (NASDAQ:AEHR - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $31.65, but opened at $25.55. Aehr Test Systems shares last traded at $23.62, with a volume of 2,980,159 shares traded.

Analyst Ratings Changes

AEHR has been the subject of several research reports. Weiss Ratings reissued a "sell (d)" rating on shares of Aehr Test Systems in a research report on Saturday, September 27th. Craig Hallum set a $24.00 price objective on shares of Aehr Test Systems and gave the stock a "hold" rating in a research report on Tuesday. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $24.00.

Aehr Test Systems Price Performance

The firm has a market cap of $742.96 million, a P/E ratio of -192.80 and a beta of 2.47. The business's 50-day moving average is $24.52 and its two-hundred day moving average is $15.66.

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

Insider Activity at Aehr Test Systems

In related news, Director Rhea J. Posedel sold 18,000 shares of the firm's stock in a transaction on Tuesday, July 22nd. The shares were sold at an average price of $19.83, for a total value of $356,940.00. Following the completion of the transaction, the director owned 71,163 shares of the company's stock, valued at approximately $1,411,162.29. This trade represents a 20.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Alistair N. Sporck sold 3,000 shares of Aehr Test Systems stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $14.13, for a total transaction of $42,390.00. Following the completion of the transaction, the vice president directly owned 30,808 shares of the company's stock, valued at approximately $435,317.04. This trade represents a 8.87% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 26,000 shares of company stock valued at $506,830. Corporate insiders own 6.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. CWM LLC grew its position in shares of Aehr Test Systems by 15.1% in the 2nd quarter. CWM LLC now owns 6,062 shares of the semiconductor company's stock valued at $78,000 after acquiring an additional 793 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of Aehr Test Systems by 7.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 15,576 shares of the semiconductor company's stock worth $201,000 after buying an additional 1,145 shares during the last quarter. Osaic Holdings Inc. lifted its stake in shares of Aehr Test Systems by 1.9% during the 2nd quarter. Osaic Holdings Inc. now owns 63,608 shares of the semiconductor company's stock worth $822,000 after buying an additional 1,210 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Aehr Test Systems by 3.1% during the 2nd quarter. Rhumbline Advisers now owns 41,466 shares of the semiconductor company's stock worth $536,000 after buying an additional 1,254 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Aehr Test Systems by 8.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,225 shares of the semiconductor company's stock worth $126,000 after buying an additional 1,344 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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