Aehr Test Systems (NASDAQ:AEHR) Shares Gap Down – Should You Sell?

Aehr Test Systems (NASDAQ:AEHR)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $114.59, but opened at $105.34. Aehr Test Systems shares last traded at $103.6450, with a volume of 395,478 shares trading hands.

Wall Street Analyst Weigh In

AEHR has been the topic of several analyst reports. William Blair upgraded shares of Aehr Test Systems from a “market perform” rating to an “outperform” rating in a research note on Monday, March 2nd. Craig Hallum upgraded shares of Aehr Test Systems from a “hold” rating to a “buy” rating and set a $68.00 price target on the stock in a research note on Wednesday, April 8th. Lake Street Capital restated a “buy” rating on shares of Aehr Test Systems in a research note on Wednesday, April 8th. Wall Street Zen upgraded shares of Aehr Test Systems from a “strong sell” rating to a “sell” rating in a research note on Saturday. Finally, Weiss Ratings upgraded shares of Aehr Test Systems from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Aehr Test Systems currently has a consensus rating of “Hold” and a consensus price target of $68.00.

Aehr Test Systems Stock Down 15.6%

The firm has a market cap of $3.10 billion, a price-to-earnings ratio of -259.08 and a beta of 3.17. The stock’s 50 day moving average is $82.49 and its 200 day moving average is $47.25.

Aehr Test Systems (NASDAQ:AEHR) last posted its quarterly earnings data on Tuesday, April 7th. The semiconductor company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.02. Aehr Test Systems had a negative net margin of 25.23% and a negative return on equity of 7.15%. The business had revenue of $10.31 million for the quarter, compared to analyst estimates of $10.85 million. Analysts anticipate that Aehr Test Systems will post -0.31 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Howard T. Slayen sold 6,819 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $104.73, for a total transaction of $714,153.87. Following the completion of the sale, the director directly owned 169,709 shares in the company, valued at approximately $17,773,623.57. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Laura Oliphant sold 4,665 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $85.59, for a total transaction of $399,277.35. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 375,005 shares of company stock valued at $28,656,178 in the last ninety days. 6.80% of the stock is owned by company insiders.

Institutional Trading of Aehr Test Systems

Large investors have recently added to or reduced their stakes in the business. KBC Group NV bought a new stake in Aehr Test Systems during the first quarter worth approximately $30,000. Sunbelt Securities Inc. bought a new stake in Aehr Test Systems during the third quarter worth approximately $27,000. Jones Financial Companies Lllp lifted its position in shares of Aehr Test Systems by 3,448.3% in the 3rd quarter. Jones Financial Companies Lllp now owns 1,029 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 1,000 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Aehr Test Systems in the 4th quarter valued at approximately $25,000. Finally, RiverPark Advisors LLC purchased a new stake in shares of Aehr Test Systems in the 3rd quarter valued at approximately $42,000. 69.69% of the stock is currently owned by institutional investors.

Aehr Test Systems Company Profile

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.