Aehr Test Systems (NASDAQ:AEHR) Shares Gap Up - Still a Buy?

Key Points

• Aehr Test Systems shares jumped sharply before trading, opening at $79.15 after closing at $67.89 and later trading around $77.94, a gain of about 12.2% on the day.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” with an average price target of $68.00, though three analysts rate it a Buy.
• The company recently beat earnings expectations with an EPS loss of $0.05 versus estimates for a $0.07 loss, but revenue missed forecasts and insiders have sold shares in recent months.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped up prior to trading on Thursday . The stock had previously closed at $67.89, but opened at $79.15. Aehr Test Systems shares last traded at $77.9370, with a volume of 932,276 shares changing hands.

Analysts Set New Price Targets

A number of research firms have recently issued reports on AEHR. Wall Street Zen upgraded Aehr Test Systems from a "strong sell" rating to a "sell" rating in a research report on Saturday, June 6th. Craig Hallum upgraded shares of Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 price target on the stock in a research note on Wednesday, April 8th. Lake Street Capital restated a "buy" rating on shares of Aehr Test Systems in a research note on Wednesday, April 8th. Finally, Weiss Ratings raised shares of Aehr Test Systems from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $68.00.

Aehr Test Systems Stock Up 12.2%

The business has a 50-day simple moving average of $95.89 and a two-hundred day simple moving average of $59.12. The stock has a market capitalization of $2.40 billion, a P/E ratio of -197.50 and a beta of 3.17.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last issued its quarterly earnings data on Tuesday, April 7th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.02. The company had revenue of $10.31 million during the quarter, compared to analysts' expectations of $10.85 million. Aehr Test Systems had a negative return on equity of 7.15% and a negative net margin of 25.23%. On average, sell-side analysts forecast that Aehr Test Systems will post -0.31 earnings per share for the current year.

Insider Transactions at Aehr Test Systems

In other Aehr Test Systems news, insider Donald P. Richmond II sold 17,011 shares of the company's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $73.18, for a total transaction of $1,244,864.98. Following the sale, the insider directly owned 181,512 shares of the company's stock, valued at approximately $13,283,048.16. This represents a 8.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Gayn Erickson sold 96,036 shares of the business's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $70.58, for a total value of $6,778,220.88. Following the completion of the transaction, the chief executive officer directly owned 197,723 shares in the company, valued at $13,955,289.34. The trade was a 32.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 309,441 shares of company stock valued at $24,130,018. 6.80% of the stock is owned by company insiders.

Institutional Trading of Aehr Test Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. KBC Group NV acquired a new position in Aehr Test Systems during the 1st quarter worth about $30,000. Sunbelt Securities Inc. bought a new stake in Aehr Test Systems during the 3rd quarter worth about $27,000. Caitong International Asset Management Co. Ltd acquired a new stake in Aehr Test Systems in the 4th quarter valued at about $25,000. CoreCap Advisors LLC increased its position in Aehr Test Systems by 241.8% in the 2nd quarter. CoreCap Advisors LLC now owns 1,251 shares of the semiconductor company's stock valued at $120,000 after acquiring an additional 885 shares in the last quarter. Finally, RiverPark Advisors LLC bought a new position in shares of Aehr Test Systems in the third quarter worth about $42,000. 69.69% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.