Avijit Ray-Chaudhuri, an EVP at Aehr Test Systems (AEHR), recently bought 3,000 shares. The buy increased his stake by 45 percent, and came to a total cost of $53,600.
This marks the first insider activity of the year. It’s the first insider buy since October, when a company director bought 700 shares. Otherwise, company insiders have been steady sellers of shares over the past year. Only a small fraction of the sales came from the exercise of stock options.
Overall, Aehr Test Systems insiders own 5.7 percent of shares.
The semiconductor testing solutions company is down nearly 40 percent over the past year. That’s in spite of quarterly revenue growth of nearly 45 percent, and a 63 percent surge in earnings.
The ongoing expansion in the semiconductor space will likely lead to a turnaround in Aehr’s share price, especially if they continue to show strong growth.
Shares recently dropped to a new 52-week low, following a strong earnings report, but weak forward guidance.
Action to take: Shares are still in a downtrend, so interested investors should hold off for now. With shares trading at 24 times earnings, patient investors can likely get a better deal going forward.
For traders, the current trend is down. The July $17.50 puts are an at-the-money trade. Last going for about $3.80, they can potentially see mid-double-digit returns from here on a further decline in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.