Aehr Test Systems (NASDAQ:AEHR) Stock Falls 10.4% - Here's Why

Key Points

• Aehr Test Systems shares fell 10.4% to about $57.22, with trading volume roughly 76% below its average. The stock’s market capitalization is approximately $1.82 billion.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a consensus price target of $132.50; Oppenheimer and Lake Street Capital set targets of $120 and $110, respectively.
• Insiders sold 109,475 shares worth about $13.8 million over the past quarter, while institutional investors own approximately 69.69% of the company.

Shares of Aehr Test Systems (NASDAQ:AEHR - Get Free Report) fell 10.4% on Thursday. The company traded as low as $58.26 and last traded at $57.2230. 585,454 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 2,476,386 shares. The stock had previously closed at $63.88.

Analyst Ratings Changes

Several equities research analysts recently weighed in on AEHR shares. Freedom Capital raised shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Zacks Research cut shares of Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 14th. Oppenheimer began coverage on shares of Aehr Test Systems in a research report on Thursday, September 10th. They issued an "outperform" rating and a $120.00 price target for the company. Lake Street Capital restated a "buy" rating and issued a $110.00 price target on shares of Aehr Test Systems in a research note on Wednesday, July 15th. Finally, Weiss Ratings lowered Aehr Test Systems from a "sell (d)" rating to a "sell (e+)" rating in a research report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $132.50.

Aehr Test Systems Stock Performance

The company has a market cap of $1.82 billion, a price-to-earnings ratio of -231.87 and a beta of 3.47. The business has a 50-day simple moving average of $91.95 and a 200-day simple moving average of $90.76.

Insider Transactions at Aehr Test Systems

In other Aehr Test Systems news, Director Laura Oliphant sold 1,717 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $133.00, for a total transaction of $228,361.00. Following the completion of the transaction, the director owned 16,100 shares in the company, valued at $2,141,300. The trade was a 9.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Alberto Salamone sold 9,672 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $127.72, for a total transaction of $1,235,307.84. Following the completion of the sale, the executive vice president directly owned 41,962 shares in the company, valued at approximately $5,359,386.64. This represents a 18.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 109,475 shares of company stock valued at $13,827,160 over the last quarter. Insiders own 4.60% of the company's stock.

Institutional Investors Weigh In On Aehr Test Systems

Several institutional investors have recently modified their holdings of AEHR. BlackRock Inc. acquired a new position in shares of Aehr Test Systems during the second quarter worth $255,476,000. State Street Corp raised its stake in Aehr Test Systems by 14.4% in the second quarter. State Street Corp now owns 712,926 shares of the semiconductor company's stock valued at $68,484,000 after buying an additional 89,620 shares in the last quarter. 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. acquired a new stake in Aehr Test Systems in the second quarter valued at $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 last quarter. 69.69% of the stock is owned by hedge funds and other institutional investors.

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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