Aehr Test Systems (NASDAQ:AEHR) Shares Gap Up - Should You Buy?

Key Points

• Aehr Test Systems shares opened sharply higher, rising from a prior close of $96.43 to $101.84 before trading at $97.50. The company has a $3.22 billion market capitalization and a beta of 3.10.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus “Buy” rating and an average price target of $136.67, with targets ranging from $110 to $125 among recently cited firms.
• Insiders sold 109,475 shares worth approximately $13.8 million over the past quarter, while institutional investors own about 69.69% of the stock.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $96.43, but opened at $101.84. Aehr Test Systems shares last traded at $97.50, with a volume of 357,139 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on AEHR. Lake Street Capital restated a "buy" rating and set a $110.00 price target on shares of Aehr Test Systems in a research note on Wednesday, July 15th. Wall Street Zen raised Aehr Test Systems from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Weiss Ratings lowered shares of Aehr Test Systems from a "sell (d)" rating to a "sell (e+)" rating in a research report on Wednesday, July 29th. Craig Hallum reaffirmed a "buy" rating and issued a $125.00 target price on shares of Aehr Test Systems in a report on Wednesday, July 15th. Finally, Zacks Research upgraded shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Aehr Test Systems presently has a consensus rating of "Buy" and a consensus target price of $136.67.

Aehr Test Systems Trading Up 2.4%

The company has a 50 day simple moving average of $94.24 and a 200 day simple moving average of $75.42. The stock has a market capitalization of $3.22 billion, a PE ratio of -413.61 and a beta of 3.10.

Insider Activity

In other news, Director Howard T. Slayen sold 5,700 shares of the firm's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $133.03, for a total value of $758,271.00. Following the completion of the sale, the director owned 140,667 shares in the company, valued at approximately $18,712,931.01. This trade represents a 3.89% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Adil Engineer sold 15,000 shares of Aehr Test Systems stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $131.02, for a total transaction of $1,965,300.00. Following the completion of the sale, the chief operating officer directly owned 46,977 shares in the company, valued at approximately $6,154,926.54. The trade was a 24.20% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 109,475 shares of company stock valued at $13,827,160. 6.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Aehr Test Systems

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

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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