Aehr Test Systems (NASDAQ:AEHR) Stock Price Up 11.5% - Should You Buy?

Key Points

• Aehr Test Systems shares jumped 11.5% to $63.11 in mid-day trading, though volume was 56% below the stock’s average daily level.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $132.50, despite ratings ranging from Sell to Strong Buy.
• Insiders sold 109,475 shares worth approximately $13.8 million over the past quarter, while institutional investors collectively own 69.69% of the company.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) traded up 11.5% during mid-day trading on Tuesday. The stock traded as high as $62.74 and last traded at $63.11. 1,094,046 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 2,474,578 shares. The stock had previously closed at $56.60.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AEHR. Lake Street Capital reissued a "buy" rating and set a $110.00 target price on shares of Aehr Test Systems in a research note on Wednesday, July 15th. Oppenheimer started coverage on Aehr Test Systems in a research note on Thursday, September 10th. They issued an "outperform" rating and a $120.00 target price for the company. Wall Street Zen raised shares of Aehr Test Systems from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Zacks Research downgraded shares of Aehr Test Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Aehr Test Systems presently has a consensus rating of "Moderate Buy" and an average target price of $132.50.

Aehr Test Systems Stock Up 11.3%

The stock has a fifty day moving average of $89.98 and a two-hundred day moving average of $72.89. The stock has a market cap of $2.06 billion, a price-to-earnings ratio of -262.93 and a beta of 3.47.

Insider Activity at Aehr Test Systems

In related news, CEO Gayn Erickson sold 40,000 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $130.84, for a total value of $5,233,600.00. Following the completion of the sale, the chief executive officer directly owned 157,723 shares in the company, valued at approximately $20,636,477.32. The trade was a 20.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Adil Engineer sold 15,000 shares of the business's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $131.02, for a total value of $1,965,300.00. Following the sale, the chief operating officer directly owned 46,977 shares of the company's stock, valued at approximately $6,154,926.54. This trade represents a 24.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 109,475 shares of company stock worth $13,827,160. Company insiders own 4.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Sigma Planning Corp acquired a new position in shares of Aehr Test Systems during the 3rd quarter valued at $1,178,000. Sterling Capital Management LLC lifted its position in shares of Aehr Test Systems by 875.9% in the 3rd quarter. Sterling Capital Management LLC now owns 1,054 shares of the semiconductor company's stock valued at $105,000 after acquiring an additional 946 shares in the last quarter. T3 Companies LLC acquired a new position in Aehr Test Systems in the 3rd quarter worth approximately $201,000. Brookstone Capital Management boosted its stake in Aehr Test Systems by 11.4% in the 3rd quarter. Brookstone Capital Management now owns 2,928 shares of the semiconductor company's stock worth $292,000 after purchasing an additional 300 shares during the period. Finally, SBI Securities Co. Ltd. lifted its holdings in shares of Aehr Test Systems by 15.1% in the third quarter. SBI Securities Co. Ltd. now owns 4,292 shares of the semiconductor company's stock valued at $428,000 after purchasing an additional 562 shares in the last quarter. 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 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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