Aehr Test Systems (NASDAQ:AEHR) Shares Gap Down - Should You Sell?

Key Points

• Aehr Test Systems shares opened lower, falling from a prior close of $63.33 to $60.55 before recovering to about $63.06, with roughly 470,577 shares traded.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $132.50 price target; Oppenheimer and Craig Hallum set targets of $120 and $125, respectively.
• Company insiders sold 109,475 shares worth approximately $13.8 million over the past 90 days, while institutional investors own 69.69% of the stock.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped down prior to trading on Tuesday. The stock had previously closed at $63.33, but opened at $60.55. Aehr Test Systems shares last traded at $63.0570, with a volume of 470,577 shares trading hands.

Analyst Ratings Changes

AEHR has been the topic of a number of recent analyst reports. Wall Street Zen raised Aehr Test Systems from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Zacks Research downgraded Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, September 14th. Weiss Ratings downgraded Aehr Test Systems from a "sell (d)" rating to a "sell (e+)" rating in a report on Wednesday, July 29th. Oppenheimer initiated coverage on shares of Aehr Test Systems in a research report on Thursday, September 10th. They set an "outperform" rating and a $120.00 target price on the stock. Finally, Craig Hallum reaffirmed a "buy" rating and set a $125.00 price target on shares of Aehr Test Systems in a research note on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Aehr Test Systems presently has an average rating of "Moderate Buy" and a consensus price target of $132.50.

Aehr Test Systems Stock Performance

The stock's 50-day moving average price is $94.36 and its 200-day moving average price is $90.47. The company has a market capitalization of $2.06 billion, a price-to-earnings ratio of -262.67 and a beta of 3.47.

Insider Transactions at Aehr Test Systems

In other Aehr Test Systems news, EVP Alberto Salamone sold 9,672 shares of the business's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $127.72, for a total transaction of $1,235,307.84. Following the sale, the executive vice president directly owned 41,962 shares in the company, valued at approximately $5,359,386.64. The trade was a 18.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Gayn Erickson sold 40,000 shares of the company's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $130.84, for a total value of $5,233,600.00. Following the completion of the sale, the chief executive officer directly owned 157,723 shares in the company, valued at $20,636,477.32. This trade represents a 20.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 109,475 shares of company stock worth $13,827,160 over the last ninety days. 4.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Advocate Investing Services LLC purchased a new stake in shares of Aehr Test Systems in the 2nd quarter worth about $26,000. Nykredit A S purchased a new position in Aehr Test Systems during the 2nd quarter valued at about $28,000. Compagnie Lombard Odier SCmA purchased a new position in Aehr Test Systems during the 2nd quarter valued at about $34,000. KBC Group NV purchased a new position in Aehr Test Systems during the 1st quarter valued at about $30,000. Finally, Tema ETFs LLC acquired a new position in Aehr Test Systems during the second quarter worth about $89,000. Hedge funds and other institutional investors own 69.69% of the company's stock.

About Aehr Test Systems

Aehr Test Systems NASDAQ: AEHR develops and manufactures test and burn-in equipment used to qualify and screen semiconductor devices. Its systems are designed to identify manufacturing defects and reliability issues before chips are shipped to customers, helping semiconductor manufacturers improve production yields and product quality.

The company's product portfolio includes the FOX family of semiconductor test systems, including the FOX-XP, FOX-NP and FOX-1P platforms. Aehr also provides wafer contactors, DiePak carriers and related test fixtures and software.

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