Aehr Test Systems (NASDAQ:AEHR) Stock Falls 6.4% - Time to Sell?

Key Points

• Aehr Test Systems shares fell 6.4% to about $79.26, with trading volume sharply below its daily average. The stock’s 50-day moving average is $98.14, while its 200-day moving average is $89.00.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $132.50; targets include $110 from Lake Street Capital and $125 from Craig Hallum.
• Insiders sold 109,475 shares worth approximately $13.8 million over the past three months, while institutional investors own 69.69% of the company. Recent buyers include BlackRock, Connor Clark & Lunn, and AWM Investment.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report)'s share price traded down 6.4% during trading on Monday. The company traded as low as $80.10 and last traded at $79.2630. 301,621 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 2,458,287 shares. The stock had previously closed at $84.64.

Analysts Set New Price Targets

AEHR has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Aehr Test Systems from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Lake Street Capital reissued a "buy" rating and set a $110.00 price objective on shares of Aehr Test Systems in a research report on Wednesday, July 15th. Weiss Ratings lowered shares of Aehr Test Systems from a "sell (d)" rating to a "sell (e+)" rating in a research note on Wednesday, July 29th. Freedom Capital raised shares of Aehr Test Systems from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $132.50.

Aehr Test Systems Trading Down 7.6%

The firm has a 50 day simple moving average of $98.14 and a two-hundred day simple moving average of $89.00. The company has a market capitalization of $2.56 billion, a PE ratio of -324.93 and a beta of 3.47.

Insider Buying and Selling at Aehr Test Systems

In related news, Director Rhea Posedel sold 5,973 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $140.00, for a total transaction of $836,220.00. Following the completion of the sale, the director directly owned 381,989 shares of the company's stock, valued at $53,478,460. This trade represents a 1.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Adil Engineer sold 15,000 shares of Aehr Test Systems stock in a transaction on 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 transaction, the chief operating officer owned 46,977 shares in the company, valued at approximately $6,154,926.54. This trade represents a 24.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 109,475 shares of company stock valued at $13,827,160. Corporate insiders own 4.60% of the company's stock.

Institutional Trading of Aehr Test Systems

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Aehr Test Systems in the second quarter valued at about $255,476,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Aehr Test Systems during the second quarter worth about $64,433,000. AWM Investment Company Inc. purchased a new position in Aehr Test Systems during the second quarter worth about $36,004,000. Next Century Growth Investors LLC raised its holdings in Aehr Test Systems by 99.9% during the fourth quarter. Next Century Growth Investors LLC now owns 552,506 shares of the semiconductor company's stock worth $11,155,000 after purchasing an additional 276,160 shares in the last quarter. Finally, Bard Associates Inc. purchased a new position in Aehr Test Systems during the second quarter worth about $15,072,000. Institutional investors and hedge funds 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 by semiconductor manufacturers. Its systems are designed to identify reliability issues and manufacturing defects in integrated circuits, including devices tested at the wafer, die, and packaged-device levels.

The company's product portfolio includes the FOX family of test and burn-in systems, WaferPak wafer-level test fixtures, and DiePak carriers for testing individual semiconductor dies. These solutions are used in the production of silicon carbide power semiconductors, silicon photonics devices, memory products, and other advanced semiconductor components.

Founded in 1977 and headquartered in Fremont, California, Aehr Test Systems serves semiconductor manufacturers and suppliers worldwide.

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