Aehr Test Systems (NASDAQ:AEHR) Shares Gap Up - Should You Buy?

Key Points

• Aehr Test Systems shares opened sharply higher, rising from a prior close of $76.87 to $84.22 before retreating to about $77.55 in active trading.
• Analyst sentiment is broadly positive: the stock has an average “Buy” rating and a consensus price target of $117.50, with recent upgrades from several research firms.
• Institutional investors own approximately 69.69% of the company, while the stock carries elevated risk indicators, including a beta of 3.17, a negative P/E ratio, and a market price below its 50-day moving average.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $76.87, but opened at $84.22. Aehr Test Systems shares last traded at $77.5510, with a volume of 565,845 shares changing hands.

Analyst Ratings Changes

Several research analysts recently commented on the company. Wall Street Zen upgraded Aehr Test Systems from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Lake Street Capital restated a "buy" rating and set a $110.00 price objective on shares of Aehr Test Systems in a research report on Wednesday, July 15th. Zacks Research raised Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 17th. Freedom Capital upgraded Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Finally, Craig Hallum reissued a "buy" rating and set a $125.00 target price on shares of Aehr Test Systems in a research report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $117.50.

Aehr Test Systems Stock Performance

The company's fifty day moving average price is $91.61 and its 200-day moving average price is $65.52. The stock has a market cap of $2.63 billion, a P/E ratio of -335.20 and a beta of 3.17.

Insiders Place Their Bets

In other Aehr Test Systems news, Director Howard T. Slayen sold 6,819 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $104.73, for a total value of $714,153.87. Following the completion of the sale, the director owned 169,709 shares of the company's stock, valued at $17,773,623.57. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 6.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Penn Capital Management Company LLC bought a new stake in shares of Aehr Test Systems during the 2nd quarter worth approximately $14,476,000. Pictet Asset Management Holding SA grew its position in Aehr Test Systems by 187.7% in the 2nd quarter. Pictet Asset Management Holding SA now owns 16,654 shares of the semiconductor company's stock valued at $1,600,000 after acquiring an additional 10,866 shares during the last quarter. Ethic Inc. purchased a new stake in Aehr Test Systems in the second quarter worth $215,000. Compagnie Lombard Odier SCmA purchased a new stake in Aehr Test Systems in the second quarter worth $34,000. Finally, Advocate Investing Services LLC bought a new stake in shares of Aehr Test Systems during the second quarter worth $26,000. 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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