Howard Slayen, a director at Aehr Testing Systems (AEHR), recently bought 700 shares. The buy increased his position by less than 1 percent, and came to a total cost of $28,140.
This marks the first insider buy at the company over the past two years. There have been dozens of insider sales, including direct sales from the company CEO and CFO, as well as the exercise of options and their sale by company officers and directors.
Overall, insiders own 7.1 percent of Aehr shares.
The semiconductor testing device company is up 130 percent over the past year as semiconductors have led the overall market higher. Aehr has benefitted operationally, with revenues up 93 percent over the past year, and earnings soaring by 694 percent.
Even with that massive growth, shares are a bit pricey to the overall market and even many semiconductor names, trading at 60 times earnings.
Action to take: Investors interested in the semiconductor space should keep an eye on shares. Aehr has little debt relative to the size of the company, and ample cash.
Plus, as a provider of testing equipment, it should benefit from the growth in the space no matter which fabricator is leading on market share. At present, shares do not pay a dividend.
For traders, the January 2024 $45 calls, last going for about $3.60, could see mid-to-high double-digit gains in the months ahead on a year-end rally for shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.