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

Key Points

• Aehr Test Systems shares jumped sharply, opening well above the prior close and trading up about 23% intraday, with heavy volume. The move comes amid renewed investor attention on the semiconductor equipment maker.
• Analyst sentiment remains mostly positive, with recent upgrades from Zacks Research and Freedom Capital and a maintained Buy rating from Craig Hallum. MarketBeat shows a consensus Buy rating and a $117.50 average price target.
• Insider sales and institutional buying are both notable: directors sold shares over the past 90 days, while large investors including several funds added or initiated positions. Institutional ownership stands at nearly 70% of the stock.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $77.36, but opened at $83.25. Aehr Test Systems shares last traded at $92.3480, with a volume of 993,909 shares changing hands.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on AEHR shares. Zacks Research raised Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research note on Friday. Weiss Ratings cut shares of Aehr Test Systems from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, July 15th. 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 reaffirmed a "buy" rating and issued a $125.00 price objective on shares of Aehr Test Systems in a report on Wednesday, July 15th. Finally, Wall Street Zen upgraded shares of Aehr Test Systems from a "sell" rating to a "hold" rating in a research report on Saturday. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $117.50.

Aehr Test Systems Trading Up 23.2%

The company's 50-day moving average price is $93.56 and its two-hundred day moving average price is $62.26. The company has a market cap of $3.00 billion, a P/E ratio of -397.07 and a beta of 3.17.

Insider Activity at Aehr Test Systems

In other Aehr Test Systems news, Director Rhea J. Posedel sold 604 shares of the company's stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $95.00, for a total value of $57,380.00. Following the transaction, the director owned 396,375 shares of the company's stock, valued at approximately $37,655,625. This represents a 0.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 value of $714,153.87. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,538 shares of company stock valued at $2,670,034 over the last ninety days. Insiders own 6.80% of the company's stock.

Institutional Investors Weigh In On Aehr Test Systems

Large investors have recently modified their holdings of the stock. Tema ETFs LLC acquired a new stake in shares of Aehr Test Systems during the second quarter worth $89,000. CoreCap Advisors LLC boosted its position in shares of 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 purchasing an additional 885 shares during the period. Strait & Sound Wealth Management LLC purchased a new position in Aehr Test Systems in the 1st quarter worth about $349,000. Cim LLC purchased a new position in Aehr Test Systems in the 1st quarter worth about $507,000. Finally, California State Teachers Retirement System raised its holdings in Aehr Test Systems by 2,271.7% during the 1st quarter. California State Teachers Retirement System now owns 41,599 shares of the semiconductor company's stock worth $1,542,000 after buying an additional 39,845 shares during the period. 69.69% of the stock is owned by institutional investors.

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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