Aehr Test Systems (NASDAQ:AEHR) shares traded higher over the last trading session, gaining 27.16% on 12/03/20. The shares fell to a low of $1.85 before closing at $2.06. Intraday shares traded counted 9.38 million, which was -5324.1% lower than its 30-day average trading volume of 172.84K. AEHR’s previous close was $1.62 while the outstanding shares total 23.25M. The firm has a beta of 1.22. The stock’s Relative Strength Index (RSI) is 77.50, with weekly volatility at 9.81% and ATR at 0.15. The AEHR stock’s 52-week price range has touched low of $1.10 and a $2.78 high.
Investors have identified the Semiconductor Equipment & Materials company Aehr Test Systems as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $47.01 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Aehr Test Systems (AEHR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AEHR, the company has in raw cash 6.31 million on their books with 0.93 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 15970000 million total, with 4173000 million as their total liabilities.
AEHR were able to record 0.6 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 0.88 million. In cash movements, the company had a total of 0.64 million as operating cash flow.
Potential earnings growth for Aehr Test Systems (AEHR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Aehr Test Systems recorded a total of 2.01 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -175.0% coming in sequential stages and their sales for the third quarter reducing by -87.52%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.78 million trying to sell their products during the last quarter, with the result yielding a gross income of 0.23 million. This allows shareholders to hold on to 23.25M with the revenue now reading 0.00 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter.
Having a look at the company’s valuation, the company is expected to record -0.29 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AEHR sounds very interesting.
Is the stock of AEHR attractive?
In related news, Former VP of Operations, FUCCI DAVID sold 18,966 shares of the company’s stock in a transaction that recorded on Sep 02. The sale was performed at an average price of 1.80, for a total value of 34,228. As the sale deal closes, the Former VP of Operations, FUCCI DAVID now sold 200 shares of the company’s stock, valued at 420. Also, President and CEO, Erickson Gayn sold 19,900 shares of the company’s stock in a deal that was recorded on Aug 14. The shares were price at an average price of 2.07 per share, with a total market value of 41,193. Following this completion of acquisition, the President and CEO, Erickson Gayn now holds 20,000 shares of the company’s stock, valued at 41,800. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.00%.