Aehr Test Systems (NASDAQ:AEHR) Shares Gap Down - Time to Sell?

Key Points

• Aehr Test Systems shares fell sharply, opening at $72.09 versus a prior close of $77.48 and later trading near $66.53, down 10.8%. The stock is below its 50-day moving average of $92.46 but above its 200-day average of $64.54.
• Despite the selloff, analyst sentiment remains positive: MarketBeat reports a consensus “Buy” rating and a $117.50 price target, with recent targets ranging from $110 to $125. Two analysts rate the stock Strong Buy, three rate it Buy, and one rates it Sell.
• Institutional investors own approximately 69.69% of the company, with several major funds increasing their stakes. Separately, director Howard T. Slayen sold 6,819 shares in May, reducing his position by 3.86%.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $77.48, but opened at $72.09. Aehr Test Systems shares last traded at $66.5290, with a volume of 461,858 shares trading hands.

Analyst Ratings Changes

AEHR has been the subject of a number of recent research reports. Lake Street Capital restated a "buy" rating and issued a $110.00 price objective on shares of Aehr Test Systems in a report on Wednesday, July 15th. Zacks Research raised shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th. Freedom Capital raised shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Craig Hallum reiterated a "buy" rating and issued a $125.00 target price on shares of Aehr Test Systems in a research report on Wednesday, July 15th. Finally, Weiss Ratings downgraded shares of Aehr Test Systems from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $117.50.

Aehr Test Systems Stock Down 10.8%

The company has a 50-day simple moving average of $92.46 and a two-hundred day simple moving average of $64.54. The stock has a market cap of $2.17 billion, a P/E ratio of -289.17 and a beta of 3.17.

Insider Activity at Aehr Test Systems

In related news, Director Howard T. Slayen sold 6,819 shares of the company's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $104.73, for a total transaction of $714,153.87. Following the completion of the sale, the director directly owned 169,709 shares in the company, valued at $17,773,623.57. This represents a 3.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 6.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Aehr Test Systems

A number of large investors have recently added to or reduced their stakes in AEHR. Wellington Management Group LLP raised its stake in shares of Aehr Test Systems by 129.9% during the fourth quarter. Wellington Management Group LLP now owns 830,664 shares of the semiconductor company's stock valued at $16,771,000 after acquiring an additional 469,400 shares during the last quarter. Invesco Ltd. grew its stake in shares of Aehr Test Systems by 1,137.2% in the third quarter. Invesco Ltd. now owns 366,570 shares of the semiconductor company's stock worth $11,037,000 after purchasing an additional 336,940 shares during the last quarter. Next Century Growth Investors LLC increased its holdings in Aehr Test Systems by 99.9% during the 4th quarter. Next Century Growth Investors LLC now owns 552,506 shares of the semiconductor company's stock valued at $11,155,000 after purchasing an additional 276,160 shares during the period. Halter Ferguson Financial Inc. raised its position in Aehr Test Systems by 41.7% during the 4th quarter. Halter Ferguson Financial Inc. now owns 642,129 shares of the semiconductor company's stock valued at $12,965,000 after purchasing an additional 189,117 shares during the last quarter. Finally, Squarepoint Ops LLC lifted its holdings in Aehr Test Systems by 1,321.9% in the 4th quarter. Squarepoint Ops LLC now owns 100,199 shares of the semiconductor company's stock worth $2,023,000 after buying an additional 108,399 shares during the period. Institutional investors own 69.69% of the company's stock.

About Aehr Test Systems

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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