On July 14, 2025, Gayn Erickson (President and CEO) reported a disposal of 4,518 shares of Aehr Test Systems (AEHR -2.65%) valued at $62,619 to either pay the exercise price of vested stock, or tax liability with shares instead of cash. This transaction does not amount to 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 provides test and burn-in systems for integrated circuits, including the ABTS and FOX product families, as well as wafer probing and packaging solutions for logic, memory, and photonic devices in the semiconductor equipment industry. The company leverages proprietary technology to address the stringent quality and performance requirements of leading chip manufacturers.
It generates revenue primarily from the sale of proprietary test systems, consumables, and related services to semiconductor manufacturers.
The company targets global semiconductor manufacturers and integrated circuit producers seeking advanced reliability and quality assurance solutions.
Foolish take
Aehr Test System CEO, Gayn Erickson's "sale" of less than $63 thousand worth of stock isn't anything to get excited about. He currently holds a $4 million direct ownership stake in a company with a current market capitalization of just $440 million, and there's a specific reason behind this transaction.
According to the SEC filing, Erickson withheld the 4,518 shares to cover the costs and taxes incurred by the vesting of the restricted stock units. In other words, all things being equal, Erickson's stock holdings will increase due to the vesting of restricted stock.
That's probably good news because Aehr, a company that manufactures test and burn-in equipment used in semiconductor manufacturing, appears to be one of the success stories of 2025. Having started the calendar year with a heavy reliance on the weakening silicon carbide (SiC) Wafer Level Burn In (WLBI) market – an end market overwhelmingly tied to electric vehicle (EV) investment – Erickson has successfully navigated the company's revenue to new markets like gallium nitride (GaN) semiconductors, and artificial intelligence processor burn-in markets.
With these new end markets starting to make meaningful contributions to revenue and the prospect of an eventual return to growth in SiC WLBI, when the EV market eventually improves, Aehr Test Systems has a bright future.
Glossary
Insider:A company executive, director, or major shareholder with access to non-public company information.
Form 4:A required SEC filing disclosing insider transactions in a company's securities.
Exercise price:The set price at which an option holder can buy or sell the underlying security.
Option-related transaction:A trade involving company stock options, such as exercising or selling shares acquired via options.
Burn-in:A testing process where electronic devices are operated under stress to detect early failures.
Wafer probing:Testing semiconductor chips on a wafer before they are cut and packaged.
Photonic devices:Electronic components that use light (photons) for functions like communication or sensing.
Outstanding shares:The total number of a company’s shares currently held by all shareholders.
Total return:The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Proprietary technology:Technology owned and controlled by a company, often protected by patents or trade secrets.
TTM:The 12-month period ending with the most recent quarterly report.
Consumables:Products used up during equipment operation, requiring regular replacement (e.g., test sockets, probes).