Trade Alert: Independent Director Of Aehr Test Systems Fariba Danesh Has Sold Stock

Anyone interested in Aehr Test Systems, Inc. (NASDAQ:AEHR) should probably be aware that the Independent Director, Fariba Danesh, recently divested US$186k worth of shares in the company, at an average price of US$18.59 each. Equally important, that sale actually reduced their holding by a full 70% which hardly makes us feel bullish about the stock.

View our latest analysis for Aehr Test Systems

Aehr Test Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Technology Officer, Donald Richmond, for US$1.5m worth of shares, at about US$48.75 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$16.55. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 8.74k shares for US$180k. But they sold 65.83k shares for US$2.6m. In total, Aehr Test Systems insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Aehr Test Systems

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.6% of Aehr Test Systems shares, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Aehr Test Systems Insider Transactions Indicate?

The stark truth for Aehr Test Systems is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Aehr Test Systems makes money, and is growing profits. 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. When we did our research, we found 4 warning signs for Aehr Test Systems (1 is potentially serious!) that we believe deserve your full attention.

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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.

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