Aehr Test Systems (NASDAQ:AEHR) Trading Down 6% - Should You Sell?

Key Points

• Shares fell about 6% to $87.47 on Monday with ~1.49M shares traded, a ~35% drop from average daily volume, after a prior close of $93.07.
• Analysts' consensus is a "Hold" with an average target price of $68.00, below the current share price despite mixed ratings (three Buys, one Hold, one Sell).
• Insiders have been net sellers recently—382,184 shares worth about $28.36 million sold over the last three months (insiders now own 6.8% of the company).

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s stock price dropped 6% during mid-day trading on Monday . The company traded as low as $87.47 and last traded at $87.4680. Approximately 1,493,230 shares were traded during trading, a decline of 35% from the average daily volume of 2,313,975 shares. The stock had previously closed at $93.07.

Wall Street Analyst Weigh In

AEHR has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Aehr Test Systems in a report on Monday, April 20th. Lake Street Capital reaffirmed a "buy" rating on shares of Aehr Test Systems in a report on Wednesday, April 8th. Craig Hallum raised Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 target price on the stock in a report on Wednesday, April 8th. William Blair raised Aehr Test Systems from a "market perform" rating to an "outperform" rating in a report on Monday, March 2nd. Finally, Wall Street Zen raised Aehr Test Systems from a "strong sell" rating to a "sell" rating in a report on Saturday, April 11th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Aehr Test Systems currently has a consensus rating of "Hold" and an average target price of $68.00.

Aehr Test Systems Stock Performance

The stock has a 50 day moving average of $53.89 and a two-hundred day moving average of $35.02. The stock has a market cap of $2.69 billion, a PE ratio of -225.29 and a beta of 3.26.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last issued its quarterly earnings results on Tuesday, April 7th. The semiconductor company reported ($0.05) earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.02. The firm had revenue of $10.31 million for 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%. Analysts expect that Aehr Test Systems will post -0.31 EPS for the current fiscal year.

Insider Transactions at Aehr Test Systems

In related news, EVP Alberto Salamone sold 15,000 shares of Aehr Test Systems stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $89.57, for a total value of $1,343,550.00. Following the transaction, the executive vice president owned 63,025 shares of the company's stock, valued at approximately $5,645,149.25. This trade represents a 19.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Howard T. Slayen sold 25,000 shares of Aehr Test Systems stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $85.00, for a total value of $2,125,000.00. Following the completion of the transaction, the director directly owned 178,328 shares in the company, valued at $15,157,880. This represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 382,184 shares of company stock worth $28,362,244 in the last three months. Insiders own 6.80% of the company's stock.

Hedge Funds Weigh In On Aehr Test Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. State of Alaska Department of Revenue purchased a new position in Aehr Test Systems during the 4th quarter valued at about $377,000. Vanguard Group Inc. grew its stake in Aehr Test Systems by 2.9% during the 3rd quarter. Vanguard Group Inc. now owns 2,288,190 shares of the semiconductor company's stock valued at $68,897,000 after acquiring an additional 65,444 shares in the last quarter. HighTower Advisors LLC grew its stake in Aehr Test Systems by 485.1% during the 3rd quarter. HighTower Advisors LLC now owns 78,340 shares of the semiconductor company's stock valued at $2,359,000 after acquiring an additional 64,950 shares in the last quarter. KLCM Advisors Inc. grew its stake in Aehr Test Systems by 200.0% during the 3rd quarter. KLCM Advisors Inc. now owns 75,000 shares of the semiconductor company's stock valued at $2,258,000 after acquiring an additional 50,000 shares in the last quarter. Finally, William Blair Investment Management LLC purchased a new position in Aehr Test Systems during the 3rd quarter valued at about $26,920,000. Hedge funds and other 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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