This Insider Has Just Sold Shares In Aehr Test Systems (NASDAQ:AEHR)

We wouldn't blame Aehr Test Systems (NASDAQ:AEHR) shareholders if they were a little worried about the fact that Geoffrey Scott, the Independent Director recently netted about US$846k selling shares at an average price of US$28.21. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Aehr Test Systems

The Last 12 Months Of Insider Transactions At Aehr Test Systems

The insider, Mario Rosati, made the biggest insider sale in the last 12 months. That single transaction was for US$3.6m worth of shares at a price of US$36.42 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$29.62. So it is hard to draw any strong conclusion from it.

In the last year Aehr Test Systems insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Aehr Test Systems

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Aehr Test Systems insiders own 6.5% of the company, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Aehr Test Systems Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Aehr Test Systems is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Aehr Test Systems and we suggest you have a look.

Of course Aehr Test Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.