Aehr Test Systems (NASDAQ:AEHR) Trading Down 9.4% - Here's What Happened

Key Points

• Aehr Test Systems shares fell 9.4% in mid-day trading, hitting as low as $101 before last trading around $102.68. Volume was far below normal, with about 320,021 shares changing hands versus an average of 2.3 million.
• Recent analyst activity was mixed, but the stock’s consensus rating remains “Hold” with an average price target of $68.00. Several firms upgraded or maintained ratings, while Weiss Ratings and Wall Street Zen made only modestly negative adjustments.
• The company’s latest quarterly results showed mixed fundamentals: EPS of -$0.05 beat expectations, but revenue of $10.31 million came in below estimates. Insiders have also been selling shares, with 375,005 shares sold over the last 90 days.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price dropped 9.4% during mid-day trading on Tuesday . The company traded as low as $101.00 and last traded at $102.6780. Approximately 320,021 shares changed hands during trading, a decline of 86% from the average daily volume of 2,296,411 shares. The stock had previously closed at $113.33.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AEHR. Weiss Ratings raised Aehr Test Systems from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Lake Street Capital restated a "buy" rating on shares of Aehr Test Systems in a research note on Wednesday, April 8th. Craig Hallum raised shares of Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 price objective on the stock in a research note on Wednesday, April 8th. Wall Street Zen upgraded shares of Aehr Test Systems from a "strong sell" rating to a "sell" rating in a report on Saturday, June 6th. Finally, William Blair upgraded Aehr Test Systems from a "market perform" rating to an "outperform" rating in a research note on Monday, March 2nd. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $68.00.

Aehr Test Systems Stock Down 8.3%

The company has a market cap of $3.27 billion, a P/E ratio of -273.01 and a beta of 3.18. The company's 50-day moving average is $95.99 and its two-hundred day moving average is $54.04.

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

Insider Buying and Selling

In other Aehr Test Systems news, EVP Alberto Salamone sold 15,000 shares of the business's stock in a transaction on Monday, April 20th. The shares were sold at an average price of $89.57, for a total transaction of $1,343,550.00. Following the sale, the executive vice president owned 63,025 shares of the company's stock, valued at $5,645,149.25. The trade was a 19.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Donald P. Richmond II sold 17,011 shares of the firm's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $73.18, for a total value of $1,244,864.98. Following the completion of the transaction, the insider directly owned 181,512 shares of the company's stock, valued at $13,283,048.16. The trade was a 8.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 375,005 shares of company stock worth $28,656,178 in the last 90 days. 6.80% of the stock is currently owned by company insiders.

Institutional Trading of Aehr Test Systems

Several institutional investors and hedge funds have recently bought and sold shares of the company. Royal Bank of Canada raised its position in shares of Aehr Test Systems by 262.7% in the first quarter. Royal Bank of Canada now owns 50,207 shares of the semiconductor company's stock worth $365,000 after buying an additional 36,364 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Aehr Test Systems by 8.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,225 shares of the semiconductor company's stock valued at $126,000 after acquiring an additional 1,344 shares in the last quarter. JPMorgan Chase & Co. boosted its position in shares of Aehr Test Systems by 7.9% during the 2nd quarter. JPMorgan Chase & Co. now owns 15,576 shares of the semiconductor company's stock valued at $201,000 after acquiring an additional 1,145 shares during the last quarter. Legal & General Group Plc boosted its position in shares of Aehr Test Systems by 110.8% during the 2nd quarter. Legal & General Group Plc now owns 6,882 shares of the semiconductor company's stock valued at $89,000 after acquiring an additional 3,617 shares during the last quarter. Finally, Rhumbline Advisers grew its holdings in shares of Aehr Test Systems by 3.1% during the second quarter. Rhumbline Advisers now owns 41,466 shares of the semiconductor company's stock worth $536,000 after purchasing an additional 1,254 shares in the last quarter. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

Aehr Test Systems Company Profile

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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