Independent Director Fariba Danesh Sold A Bunch Of Shares In Aehr Test Systems

Anyone interested in Aehr Test Systems, Inc. (NASDAQ:AEHR) should probably be aware that the Independent Director, Fariba Danesh, recently divested US$223k worth of shares in the company, at an average price of US$24.79 each. In particular, we note that the sale equated to a 73% reduction in their position size, which doesn't exactly instill confidence.

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The Last 12 Months Of Insider Transactions At Aehr Test Systems

In fact, the recent sale by Fariba Danesh was the biggest sale of Aehr Test Systems shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$23.49. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Aehr Test Systems didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Aehr Test Systems

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Aehr Test Systems insiders own about US$41m worth of shares. That equates to 5.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Aehr Test Systems Tell Us?

Insiders haven't bought Aehr Test Systems stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aehr Test Systems. Be aware that Aehr Test Systems is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Aehr Test Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.