Have Insiders Sold Aehr Test Systems Shares Recently?

We wouldn't blame Aehr Test Systems, Inc. (NASDAQ:AEHR) shareholders if they were a little worried about the fact that Geoffrey Scott, the Independent Director recently netted about US$1.6m selling shares at an average price of US$82.13. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Aehr Test Systems

In fact, the recent sale by Independent Director Geoffrey Scott was not their only sale of Aehr Test Systems shares this year. Earlier in the year, they fetched US$95.00 per share in a -US$5.7m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$81.05). So it may not tell us anything about how insiders feel about the current share price.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Aehr Test Systems

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aehr Test Systems insiders own about US$126m worth of shares (which is 4.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Aehr Test Systems Insider Transactions Indicate?

Insiders haven't bought Aehr Test Systems stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aehr Test Systems. For instance, we've identified 3 warning signs for Aehr Test Systems (2 don't sit too well with us) you should be aware of.

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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.