Aehr (NASDAQ: AEHR) CTO adds shares via plan and covers RSU taxes
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Aehr Test Systems CTO Donald P. Richmond II reported routine equity compensation activity. On April 1, he acquired 2,120 shares of common stock at $6.6725 per share through the company’s Amended and Restated 2006 Employee Stock Purchase Plan, described as a tax-conditioned plan under Internal Revenue Code Section 423.
On April 2, 341 shares of common stock were withheld to satisfy tax obligations upon vesting of restricted stock units, which the company clarifies does not represent a sale by the reporting person. After these transactions, he directly owns 214,996 shares of common stock, and this amount includes shares subject to unvested restricted stock units.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
RICHMOND DONALD P. II
Role
CTO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Common Stock | 341 | $44.32 | $15K |
| Other | Common Stock | 2,120 | $6.6725 | $14K |
Holdings After Transaction:
Common Stock — 214,996 shares (Direct)
Footnotes (1)
- These shares have been purchased through the Company's Amended and Restated 2006 Employee Stock Purchase Plan, a "tax-conditioned plan" per Internal Revenue Code Section 423. This purchase is exempt from Section 16 of the Securities Exchange Act of 1934 regarding liabilities arising from six-month short-swing transactions in the Company's securities. Represents shares that were withheld to satisfy tax withholding obligations upon vesting of restricted stock units. This does not represent a sale by the Reporting Person. The amount reported includes shares subject to unvested restricted stock units.
Key Figures
ESPP purchase: 2,120 shares at $6.6725
Tax withholding shares: 341 shares at $44.32
Post-transaction holdings: 214,996 shares
3 metrics
ESPP purchase
2,120 shares at $6.6725
Common stock acquired through employee stock purchase plan on April 1
Tax withholding shares
341 shares at $44.32
Shares withheld for tax on RSU vesting on April 2
Post-transaction holdings
214,996 shares
Common stock directly owned after reported transactions, including unvested RSUs
Key Terms
Employee Stock Purchase Plan, restricted stock units, Section 16, short-swing transactions
4 terms
Employee Stock Purchase Plan financial
"These shares have been purchased through the Company's Amended and Restated 2006 Employee Stock Purchase Plan"
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
restricted stock units financial
"Represents shares that were withheld to satisfy tax withholding obligations upon vesting of restricted stock units."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Section 16 regulatory
"This purchase is exempt from Section 16 of the Securities Exchange Act of 1934"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
short-swing transactions regulatory
"regarding liabilities arising from six-month short-swing transactions in the Company's securities."
FAQ
What insider transactions did AEHR CTO Donald P. Richmond II report?
He reported two routine transactions: acquiring 2,120 AEHR shares through the employee stock purchase plan and having 341 shares withheld to cover taxes on vested restricted stock units. These actions relate to compensation and tax obligations, not open-market trading.
How did the AEHR employee stock purchase plan affect the CTO’s holdings?
The CTO purchased 2,120 shares through AEHR’s Amended and Restated 2006 Employee Stock Purchase Plan, described as a tax-conditioned plan under Internal Revenue Code Section 423. This plan-based acquisition increased his direct ownership stake in the company’s common stock.
Does this AEHR Form 4 indicate open-market buying or selling by the CTO?
The filing does not show open-market trades. It reflects a purchase via the employee stock purchase plan and share withholding for tax on vested restricted stock units, both of which are compensation-related events rather than discretionary market buy or sell decisions.