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

Key Points

• Aehr Test Systems shares fell sharply, opening at $54.17 versus a prior close of $61.21 and last trading near $56.11, down 11.6%. The stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $132.50, although Zacks recently downgraded the stock to “hold.”
• Insiders sold $13.8 million of shares over the past three months, while institutional investors own 69.69% of the company and several major firms recently established or increased positions.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped down before the market opened on Friday. The stock had previously closed at $61.21, but opened at $54.17. Aehr Test Systems shares last traded at $56.1090, with a volume of 405,779 shares traded.

Analyst Upgrades and Downgrades

AEHR has been the topic of several recent analyst reports. Zacks Research lowered shares of Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. Oppenheimer initiated coverage on Aehr Test Systems in a research note on Thursday, September 10th. They set an "outperform" rating and a $120.00 price objective on the stock. Wall Street Zen upgraded Aehr Test Systems from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Lake Street Capital restated a "buy" rating and issued a $110.00 price target on shares of Aehr Test Systems in a report on Wednesday, July 15th. Finally, Freedom Capital raised Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $132.50.

Aehr Test Systems Trading Down 11.6%

The company has a 50 day simple moving average of $84.69 and a 200 day simple moving average of $73.63. The stock has a market cap of $1.77 billion, a P/E ratio of -224.47 and a beta of 3.47.

Insider Activity

In other Aehr Test Systems news, Director Laura Oliphant sold 1,717 shares of the stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $133.00, for a total value of $228,361.00. Following the completion of the sale, the director owned 16,100 shares in the company, valued at $2,141,300. This trade represents a 9.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Howard Slayen sold 5,700 shares of Aehr Test Systems stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $133.03, for a total transaction of $758,271.00. Following the completion of the transaction, the director directly owned 140,667 shares of the company's stock, valued at approximately $18,712,931.01. This trade represents a 3.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 109,475 shares of company stock valued at $13,827,160. 4.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Aehr Test Systems

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Aehr Test Systems in the second quarter valued at approximately $255,476,000. State Street Corp increased its position in Aehr Test Systems by 14.4% during the 2nd quarter. State Street Corp now owns 712,926 shares of the semiconductor company's stock worth $68,484,000 after buying an additional 89,620 shares during the period. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Aehr Test Systems during the second quarter worth $64,433,000. AWM Investment Company Inc. bought a new stake in shares of Aehr Test Systems in the second quarter valued at about $36,004,000. Finally, Wellington Management Group LLP boosted its position in shares of Aehr Test Systems by 56.0% in the second quarter. Wellington Management Group LLP now owns 238,453 shares of the semiconductor company's stock valued at $22,906,000 after acquiring an additional 85,568 shares during the period. Institutional investors 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 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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