On July 14, 2025, Gayn Erickson (President and CEO) disposed of 4,518 shares of Aehr Test Systems (AEHR, representing 4.74%) for $62,619. This could be to cover the cost of exercising vested stock options or for tax purposes, using shares instead of cash. However, this action should not be interpreted as a sale of stock by the CEO.
Transaction summary
| Metric | Value |
|---|---|
| Shares Traded | 4,518 |
| Transaction Value | $62,619 |
| Post-Transaction Shares | 272,511 |
| Post-Transaction Value | $3.8 million |
| YTD Performance | -11.1% (as on market close on July 16, 2025) |
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $441.6 million |
| Revenue (TTM) | $59.0 million |
| Net income (TTM) | ($3.91 million) |
| One-year price change | -14.49% |
Company snapshot
Aehr Test Systems offers test and burn-in systems tailored for integrated circuits, encompassing the ABTS and FOX product lines, along with wafer probing and packaging solutions for logic, memory, and photonic devices within the semiconductor industry. The company uses exclusive technology to meet the demanding quality and performance standards of prominent chipmakers.
The main source of income comes from selling exclusive testing equipment, supplies, and associated services to companies that produce semiconductors.
Our company focuses on providing sophisticated reliability and quality assurance solutions to international semiconductor companies and integrated circuit producers who aim for excellence.
Foolish take
The CEO of Aehr Test System, Gayn Erickson, recently sold a relatively small amount of stock, valued at under $63 thousand. This sale is not significant considering that he has a direct ownership stake worth $4 million in the company, which currently has a market capitalization of approximately $440 million. There’s a particular reason for this transaction.
Based on the SEC filing, it appears that Erickson set aside 4,518 shares to cover expenses related to the vesting of his restricted stock units. In simpler terms, as these restricted stocks become available for him to own, Erickson’s total stock holdings will increase.
2025 saw Aehr, a firm specializing in test and burn-in equipment for semiconductor manufacturing, emerge as one of the year’s success stories. Initially dependent on the dwindling silicon carbide (SiC) Wafer Level Burn In (WLBI) market, which is largely connected to electric vehicle (EV) investment, Erickson skillfully steered its revenue towards thriving markets such as gallium nitride (GaN) semiconductors and artificial intelligence processor burn-in sectors.
As emerging markets significantly boost revenues for Aehr Test Systems and with the potential for Silicon Carbide Wide-Bandgap power semiconductors (SiC WLBI) to drive growth in the future, especially when the Electric Vehicle market recovers, Aehr Test Systems looks promising.
Glossary
Insider: An individual within a company who possesses exclusive access to confidential corporate information.
Form 4: A mandatory SEC filing disclosing insider transactions involving the company’s securities.
Exercise price: The predetermined cost at which an option holder can buy or sell the underlying asset.
Option-related transaction: A financial operation pertaining to company stock options, such as exercising or selling shares acquired through options.
Burn-in: A testing method where electronic devices are subjected to high stress conditions to identify early failures.
Wafer probing: The process of examining semiconductor chips on a wafer before they are separated and packaged.
Photonic devices: Components in electronics that employ light (photons) for purposes like communication or sensing.
Outstanding shares: The total amount of a company’s shares currently held by all shareholders.
Total return: The investment’s price increase along with all dividends and distributions, assuming they are reinvested.
Proprietary technology: Technology that belongs to a company, often protected by patents or trade secrets.
TTM: The 12-month timeframe ending with the most recent quarterly report.
Consumables: Products that are used up during equipment operation and need to be replaced regularly (e.g., test sockets, probes).
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2025-07-17 23:25