Aehr Test Systems (NASDAQ:AEHR) Shares Down 5.8% - Time to Sell?

Key Points

• Aehr Test Systems shares fell 5.8% to about $98.39, with trading volume 52% below the average. The stock remains above its 50-day and 200-day moving averages but has a high beta of 3.47.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $132.50. Targets include $120 from Oppenheimer and $175 from Jefferies, although Zacks recently downgraded the stock to “Hold.”
• Insiders sold 109,475 shares worth $13.8 million over the past 90 days, while institutional investors own 69.69% of the company. BlackRock initiated a position valued at approximately $255.5 million, and other major funds increased their holdings.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s stock price dropped 5.8% on Tuesday. The stock traded as low as $99.15 and last traded at $98.3920. 1,163,256 shares changed hands during trading, a decline of 52% from the average session volume of 2,446,824 shares. The stock had previously closed at $104.40.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Oppenheimer started coverage on Aehr Test Systems in a research report on Thursday, September 10th. They set an "outperform" rating and a $120.00 price objective on the stock. Freedom Capital upgraded shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Wall Street Zen upgraded shares of Aehr Test Systems from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Jefferies Financial Group initiated coverage on shares of Aehr Test Systems in a report on Thursday, August 13th. They set a "buy" rating and a $175.00 target price on the stock. Finally, Zacks Research downgraded shares of Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Aehr Test Systems currently has an average rating of "Moderate Buy" and a consensus price target of $132.50.

Aehr Test Systems Price Performance

The firm's 50-day simple moving average is $96.92 and its 200 day simple moving average is $87.54. The firm has a market capitalization of $3.23 billion, a price-to-earnings ratio of -412.02 and a beta of 3.47.

Insider Transactions at Aehr Test Systems

In related news, CEO Gayn Erickson sold 40,000 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $130.84, for a total transaction of $5,233,600.00. Following the completion of the transaction, the chief executive officer directly owned 157,723 shares in the company, valued at $20,636,477.32. This represents a 20.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Rhea J. Posedel sold 8,413 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $130.00, for a total transaction of $1,093,690.00. Following the completion of the sale, the director owned 387,962 shares in the company, valued at $50,435,060. This represents a 2.12% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 109,475 shares of company stock valued at $13,827,160. Company insiders own 4.60% of the company's stock.

Institutional Investors Weigh In On Aehr Test Systems

Several hedge funds have recently modified their holdings of AEHR. BlackRock Inc. bought a new position in Aehr Test Systems in the 2nd quarter valued at approximately $255,476,000. State Street Corp lifted its holdings in shares of Aehr Test Systems by 14.4% during the second quarter. State Street Corp now owns 712,926 shares of the semiconductor company's stock worth $68,484,000 after purchasing an additional 89,620 shares during the period. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Aehr Test Systems in the second quarter valued at $64,433,000. AWM Investment Company Inc. bought a new position in Aehr Test Systems during the 2nd quarter worth $36,004,000. Finally, Wellington Management Group LLP lifted its holdings in Aehr Test Systems by 56.0% during the 2nd quarter. Wellington Management Group LLP now owns 238,453 shares of the semiconductor company's stock worth $22,906,000 after buying an additional 85,568 shares during the period. Institutional investors and hedge funds own 69.69% of the company's stock.

Aehr Test Systems Company Profile

Aehr Test Systems NASDAQ: AEHR develops and manufactures test and burn-in equipment used by semiconductor manufacturers. Its systems are designed to identify reliability issues and manufacturing defects in integrated circuits, including devices tested at the wafer, die, and packaged-device levels.

The company's product portfolio includes the FOX family of test and burn-in systems, WaferPak wafer-level test fixtures, and DiePak carriers for testing individual semiconductor dies. These solutions are used in the production of silicon carbide power semiconductors, silicon photonics devices, memory products, and other advanced semiconductor components.

Founded in 1977 and headquartered in Fremont, California, Aehr Test Systems serves semiconductor manufacturers and suppliers worldwide.

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