AEHR Test Systems (NASDAQ:AEHR) has reported that Executive VP of Research and Development, Avijit K. Ray-Chaudhuri, has recently invested in the company's stock. The executive purchased shares worth approximately $97,847, according to the latest filings with the Securities and Exchange Commission.
On July 18, Ray-Chaudhuri acquired 2,450 shares of AEHR Test Systems' common stock at a price of $20.32 per share. The following day, he continued to increase his stake by purchasing an additional 2,591 shares, this time at a lower price of $18.55 per share. These transactions reflect a price range of $18.55 to $20.32 for the shares acquired over the two-day period.
The total number of shares owned by Ray-Chaudhuri following these transactions has reached 28,100, which includes shares subject to unvested restricted stock units as noted in the footnotes of the filing.
Investors often look to insider buying as a positive signal about a company's future prospects or as a show of confidence in the firm's current valuation. AEHR Test Systems specializes in instruments for the measurement and testing of electricity and electronic signals, serving a variety of industrial applications and services.
The reported purchases by the company's Executive VP of R&D may be of interest to current and potential shareholders, as insiders are typically privy to more in-depth knowledge about the company's operations and potential.
The filing also included a power of attorney document, indicating that Avijit K. Ray-Chaudhuri has appointed individuals to act on his behalf for future transactions, ensuring compliance with SEC regulations.
AEHR Test Systems has not made any additional comments regarding these transactions. Investors are encouraged to consider the context of these purchases as part of their broader investment research into the company.
In other recent news, Aehr Test Systems has posted strong fiscal 2024 earnings, reporting a fourth-quarter revenue of about $16.6 million and a GAAP net income of roughly $23.8 million. For the full fiscal year 2024, Aehr reported revenues of around $66.2 million and a GAAP net income of nearly $33.1 million, surpassing both the company's previous guidance and analyst consensus. In addition, Aehr Test Systems has announced a definitive agreement to acquire Incal Technology, Inc. for $21 million, a move that will integrate Incal's high-power test solutions into Aehr's product line, targeting the artificial intelligence semiconductor market.
On the analyst front, Craig-Hallum has upgraded Aehr Test Systems stock from Hold to Buy, setting a price target of $25.00. This upgrade reflects a positive outlook on the company's diversification of its opportunity set beyond its silicon carbide expansion narrative.
Despite a slowdown in electric vehicle demand impacting product orders, Aehr achieved record annual revenue. The company remains optimistic about its long-term prospects, citing opportunities in markets like silicon carbide, gallium nitride, silicon photonics, and memory semiconductors. These are the recent developments surrounding Aehr Test Systems.
InvestingPro Insights
AEHR Test Systems (NASDAQ:AEHR) has seen notable insider activity, with Executive VP of Research and Development, Avijit K. Ray-Chaudhuri, showing confidence in the company through recent stock purchases. This move aligns with certain InvestingPro metrics and tips that may be of interest to investors considering AEHR's financial health and market performance.
InvestingPro Data indicates that AEHR has a market capitalization of $537.28 million and a P/E ratio of 15.78, which adjusts slightly to 15.5 when looking at the last twelve months as of Q4 2024. The company's PEG ratio during this period stands at a low 0.13, suggesting that the stock could be undervalued relative to its earnings growth. Meanwhile, AEHR's revenue for the last twelve months as of Q4 2024 is reported at $66.22 million, with a gross profit margin of 49.64%.
Investors might also find the following InvestingPro Tips particularly relevant:
1. AEHR is trading at a low P/E ratio relative to near-term earnings growth, which might explain Ray-Chaudhuri's timing to increase his stake at current prices.
2. The company's liquid assets exceed short-term obligations, which is a positive sign for its financial stability and operational flexibility.
For those looking for a deeper dive into AEHR Test Systems' financials and market performance, InvestingPro offers additional insights. There are 15 more tips available that could help investors make a more informed decision. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for access to these valuable tips.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.