Aehr Test Systems (NASDAQ:AEHR) Stock Falls 6.3% - What's Next?

Key Points

• Aehr Test Systems shares fell 6.3% to about $97.81 in midday trading, with volume roughly 77% below its average. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $132.50; targets range from $110 to $175.
• Insiders sold 109,475 shares worth approximately $13.8 million over the past three months, while institutional ownership stands at 69.69% after several funds initiated new positions.

Shares of Aehr Test Systems (NASDAQ:AEHR - Get Free Report) were down 6.3% during mid-day trading on Monday. The company traded as low as $96.51 and last traded at $97.8090. Approximately 568,991 shares traded hands during trading, a decline of 77% from the average daily volume of 2,458,868 shares. The stock had previously closed at $104.39.

Analyst Ratings Changes

A number of research firms recently issued reports on AEHR. Lake Street Capital reiterated a "buy" rating and set a $110.00 price objective on shares of Aehr Test Systems in a research note on Wednesday, July 15th. Zacks Research lowered Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, September 14th. Oppenheimer initiated coverage on Aehr Test Systems in a research report on Thursday, September 10th. They set an "outperform" rating and a $120.00 price target on the stock. 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. Finally, Jefferies Financial Group assumed coverage on shares of Aehr Test Systems in a research note on Thursday, August 13th. They set a "buy" rating and a $175.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $132.50.

Aehr Test Systems Price Performance

The company has a 50 day simple moving average of $94.92 and a 200-day simple moving average of $84.87. The stock has a market cap of $3.22 billion, a P/E ratio of -412.14 and a beta of 3.06.

Insiders Place Their Bets

In other news, COO Adil Engineer sold 15,000 shares of Aehr Test Systems stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $131.02, for a total value of $1,965,300.00. Following the transaction, the chief operating officer owned 46,977 shares in the company, valued at approximately $6,154,926.54. The trade was a 24.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Laura Oliphant sold 1,717 shares of the business's stock in a transaction dated 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 directly owned 16,100 shares of the company's stock, valued at approximately $2,141,300. This trade represents a 9.64% 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 valued at $13,827,160 over the last three months. 4.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Aehr Test Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Algert Global LLC purchased a new position in shares of Aehr Test Systems during the 2nd quarter worth approximately $7,903,000. The Manufacturers Life Insurance Company purchased a new position in shares of Aehr Test Systems in the 1st quarter valued at approximately $291,000. Rice Hall James & Associates LLC purchased a new position in shares of Aehr Test Systems in the 2nd quarter valued at approximately $8,410,000. Ninepoint Partners LP bought a new stake in shares of Aehr Test Systems during the second quarter valued at approximately $960,000. Finally, Bank of America Corp DE bought a new stake in shares of Aehr Test Systems during the second quarter valued at approximately $11,629,000. 69.69% of the stock is currently owned by institutional investors.

About Aehr Test Systems

Aehr Test Systems NASDAQ: AEHR develops and manufactures semiconductor test and burn-in equipment used to verify the reliability and performance of integrated circuits, wafers and packaged devices. Its systems are designed to identify defects and reliability issues before semiconductor products are shipped to customers.

The company's product portfolio includes the FOX family of test and burn-in systems, along with wafer-level and packaged-device solutions such as WaferPak contactors and DiePak carriers.

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