Aehr Test Systems (NASDAQ:AEHR) Shares Gap Up - Here's Why

Key Points

• Aehr Test Systems shares jumped 8.8%, opening at $90.39 versus a prior close of $86.26, with the stock later trading near $91.77.
• Analyst sentiment is broadly positive: the stock has an average rating of “Buy” and an average price target of $136.67, including Jefferies’ $175 target.
• Insiders have been selling shares, with executives and directors selling 109,475 shares worth approximately $13.8 million over the past 90 days; institutional investors own 69.69% of the company.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $86.26, but opened at $90.39. Aehr Test Systems shares last traded at $91.7720, with a volume of 1,472,161 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. Craig Hallum reissued a "buy" rating and issued a $125.00 target price on shares of Aehr Test Systems in a research report on Wednesday, July 15th. Freedom Capital upgraded Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Jefferies Financial Group assumed coverage on Aehr Test Systems in a research note on Thursday, August 13th. They issued a "buy" rating and a $175.00 price objective on the stock. Weiss Ratings downgraded shares of Aehr Test Systems from a "sell (d)" rating to a "sell (e+)" rating in a report on Wednesday, July 29th. Finally, 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. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $136.67.

Aehr Test Systems Stock Up 8.8%

The company has a market capitalization of $3.06 billion, a PE ratio of -389.52 and a beta of 3.06. The company has a 50-day moving average price of $90.22 and a two-hundred day moving average price of $79.41.

Insider Buying and Selling at Aehr Test Systems

In other Aehr Test Systems news, Director Rhea Posedel sold 8,413 shares of Aehr Test Systems stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $130.00, for a total transaction of $1,093,690.00. Following the completion of the transaction, the director owned 387,962 shares of the company's stock, valued at $50,435,060. The trade was a 2.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Howard Slayen sold 20,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $108.30, for a total transaction of $2,166,000.00. Following the completion of the transaction, the director owned 146,367 shares of the company's stock, valued at $15,851,546.10. This trade represents a 12.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 109,475 shares of company stock worth $13,827,160. 6.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AEHR. Advocate Investing Services LLC bought a new stake in Aehr Test Systems in the 2nd quarter worth approximately $26,000. Nykredit A S purchased a new position in shares of Aehr Test Systems in the second quarter worth $28,000. Compagnie Lombard Odier SCmA bought a new stake in Aehr Test Systems during the 2nd quarter valued at $34,000. Millennium Management LLC boosted its position in Aehr Test Systems by 0.8% during the 4th quarter. Millennium Management LLC now owns 59,219 shares of the semiconductor company's stock valued at $1,196,000 after buying an additional 492 shares during the period. Finally, KBC Group NV purchased a new stake in Aehr Test Systems during the 1st quarter valued at $30,000. 69.69% of the stock is currently owned by hedge funds and other institutional investors.

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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