Investors Purchase High Volume of Aehr Test Systems Call Options (NASDAQ:AEHR)

Key Points

• Aehr Test Systems saw unusually heavy options activity, with traders buying 23,832 call options — about 156% above its average daily call volume.
• The stock jumped 5.9% to $72.01 after the company reported fiscal Q4 earnings of $0.05 per share, beating expectations for a loss, and revenue rose to $18.8 million from $14.1 million a year earlier.
• Analysts remain mixed but generally constructive: Craig Hallum upgraded the stock to buy with a $68 target, while MarketBeat shows a consensus Hold rating and an average price target of $68.00.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) was the target of unusually large options trading on Tuesday. Stock traders bought 23,832 call options on the stock. This is an increase of approximately 156% compared to the average daily volume of 9,315 call options.

Analyst Upgrades and Downgrades

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

Aehr Test Systems Stock Up 5.9%

Shares of NASDAQ AEHR traded up $3.99 during midday trading on Tuesday, reaching $72.01. 4,630,303 shares of the stock were exchanged, compared to its average volume of 2,275,283. The firm has a market cap of $2.26 billion, a price-to-earnings ratio of -189.50 and a beta of 3.17. Aehr Test Systems has a twelve month low of $14.01 and a twelve month high of $126.62. The firm has a 50-day simple moving average of $95.13 and a two-hundred day simple moving average of $60.18.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) last released its quarterly earnings results on Tuesday, July 14th. The semiconductor company reported $0.05 earnings per share for the quarter, topping the consensus estimate of ($0.01) by $0.06. Aehr Test Systems had a negative net margin of 25.23% and a negative return on equity of 7.15%. Research analysts expect that Aehr Test Systems will post -0.31 EPS for the current fiscal year.

Insider Buying and Selling

In other news, EVP Alberto Salamone sold 15,000 shares of the business's stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $89.57, for a total value 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Howard T. Slayen sold 25,000 shares of Aehr Test Systems stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $85.00, for a total value of $2,125,000.00. Following the sale, the director owned 178,328 shares of the company's stock, valued at approximately $15,157,880. This trade represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 123,606 shares of company stock worth $10,969,625 over the last quarter. Corporate insiders own 6.80% of the company's stock.

Institutional Trading of Aehr Test Systems

A number of institutional investors have recently bought and sold shares of the business. KBC Group NV acquired a new stake in shares of Aehr Test Systems during the first quarter worth $30,000. Sunbelt Securities Inc. acquired a new stake in Aehr Test Systems during the third quarter worth about $27,000. Tema ETFs LLC purchased a new stake in Aehr Test Systems during the 2nd quarter worth $89,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Aehr Test Systems in the 4th quarter valued at about $25,000. Finally, CoreCap Advisors LLC raised its stake in Aehr Test Systems by 241.8% during the second quarter. CoreCap Advisors LLC now owns 1,251 shares of the semiconductor company's stock worth $120,000 after acquiring an additional 885 shares during the period. 69.69% of the stock is owned by hedge funds and other institutional investors.

Key Aehr Test Systems News

Here are the key news stories impacting Aehr Test Systems this week:

• Positive Sentiment: Aehr Test Systems reported fiscal Q4 earnings of $0.05 per share, topping analysts’ estimate of a $0.01 loss, which suggests the company is executing better than Wall Street expected.
• Positive Sentiment: The company said revenue was $18.8 million in the quarter, up from $14.1 million a year ago, showing improving sales momentum. Article Title
• Positive Sentiment: Aehr also reported record quarterly bookings and more than $100 million in effective backlog, giving investors more confidence in future revenue visibility. Article Title
• Positive Sentiment: The company issued FY2027 revenue guidance of $130 million to $150 million, far above the consensus estimate of about $85.4 million, which signals a much stronger growth outlook. Article Title
• Positive Sentiment: The company also announced more than $8 million in new silicon carbide wafer-level burn-in orders, reinforcing demand from electric-vehicle and automotive customers. Article Title
• Neutral Sentiment: Unusual options activity showed heavy call buying, indicating traders are betting on further upside after the earnings release. Article Title
• Negative Sentiment: The company still posted negative return on equity and a negative net margin, so profitability remains a key issue even with the improved outlook.

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.

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.