Aehr Test Systems (NASDAQ:AEHR) Trading Up 6.8% - Still a Buy?

Key Points

• Aehr Test Systems shares jumped about 6.8% to roughly $89.58 midday and are trading well above their 50‑day ($42.81) and 200‑day ($31.03) moving averages, giving the company a market cap of about $2.89 billion.
• Analyst sentiment is mixed—three Buys, one Hold and one Sell—resulting in an average rating of Hold and an average price target of $68, well below the current share price.
• Insiders have been net sellers (335,724 shares worth about $23.7M over the last three months) even as the company reported a slight EPS beat (‑$0.05 vs. ‑$0.07) while revenue missed estimates and margins remain negative.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price was up 6.8% during mid-day trading on Monday . The stock traded as high as $88.95 and last traded at $89.5820. Approximately 980,987 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 2,164,906 shares. The stock had previously closed at $83.86.

Analyst Ratings Changes

Several research analysts have recently issued reports on AEHR shares. William Blair upgraded shares of Aehr Test Systems from a "market perform" rating to an "outperform" rating in a report on Monday, March 2nd. Wall Street Zen upgraded shares of Aehr Test Systems from a "strong sell" rating to a "sell" rating in a report on Saturday, April 11th. Craig Hallum raised 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. Lake Street Capital reissued a "buy" rating on shares of Aehr Test Systems in a research note on Wednesday, April 8th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Aehr Test Systems in a research note on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Aehr Test Systems currently has an average rating of "Hold" and an average target price of $68.00.

Aehr Test Systems Trading Up 9.5%

The company's 50-day moving average price is $42.81 and its two-hundred day moving average price is $31.03. The company has a market cap of $2.89 billion, a P/E ratio of -241.64 and a beta of 2.28.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last posted its quarterly earnings results on Tuesday, April 7th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.02. The company 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%. Equities analysts forecast that Aehr Test Systems will post 0.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Rhea J. Posedel sold 30,000 shares of the stock in a transaction on Thursday, April 9th. The stock was sold at an average price of $70.00, for a total value of $2,100,000.00. Following the completion of the transaction, the director owned 426,979 shares in the company, valued at $29,888,530. This trade represents a 6.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Donald P. Richmond II sold 17,011 shares of the business's stock in a transaction that occurred on 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 owned 181,512 shares in the company, valued at $13,283,048.16. This represents a 8.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 335,724 shares of company stock worth $23,701,156 over the last three months. Company insiders own 6.80% of the company's stock.

Institutional Trading of Aehr Test Systems

Several hedge funds and other institutional investors have recently modified their holdings of AEHR. Royal Bank of Canada boosted 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 during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased 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 purchasing an additional 1,344 shares during the period. JPMorgan Chase & Co. boosted its stake 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 buying an additional 1,145 shares during the period. Legal & General Group Plc boosted its stake 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 buying an additional 3,617 shares during the period. Finally, Rhumbline Advisers boosted its stake in shares of Aehr Test Systems by 3.1% during the 2nd quarter. Rhumbline Advisers now owns 41,466 shares of the semiconductor company's stock valued at $536,000 after buying an additional 1,254 shares during the period. Institutional investors and hedge funds 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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