FormFactor (NASDAQ:FORM) Stock Gets Downgrade from Wall Street Zen

Key Points

• Wall Street Zen downgraded FormFactor from “strong buy” to “buy.” Analysts overall maintain a “moderate buy” consensus, with an average price target of $133.25.
• FormFactor reported quarterly EPS of $1.04, beating the $0.86 consensus, and revenue of $280.55 million, above estimates. Revenue increased 38.4% year over year.
• FORM opened at $87.53, below its 50-day and 200-day moving averages of $112.83 and $113.96, respectively.

FormFactor (NASDAQ:FORM - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

FORM has been the topic of a number of other reports. Jefferies Financial Group started coverage on shares of FormFactor in a report on Wednesday. They issued a "buy" rating and a $102.00 target price on the stock. Deutsche Bank began coverage on shares of FormFactor in a report on Wednesday, September 30th. They set a "buy" rating and a $200.00 target price for the company. Evercore set a $150.00 price target on shares of FormFactor in a research report on Thursday, July 30th. B. Riley Financial decreased their price target on shares of FormFactor from $150.00 to $125.00 and set a "buy" rating on the stock in a research report on Monday, November 9th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of FormFactor in a report on Tuesday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $133.25.

FormFactor Price Performance

NASDAQ:FORM opened at $87.53 on Friday. The company has a quick ratio of 3.02, a current ratio of 3.68 and a debt-to-equity ratio of 0.01. The business's 50-day moving average price is $112.83 and its 200 day moving average price is $113.96. FormFactor has a 52-week low of $47.33 and a 52-week high of $160.27. The firm has a market cap of $6.85 billion, a P/E ratio of 39.97 and a beta of 1.27.

FormFactor (NASDAQ:FORM - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.04 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.18. FormFactor had a net margin of 17.72% and a return on equity of 18.40%. The company had revenue of $280.55 million during the quarter, compared to the consensus estimate of $270.52 million. During the same period in the prior year, the company earned $0.33 EPS. FormFactor's revenue was up 38.4% on a year-over-year basis. As a group, sell-side analysts predict that FormFactor will post 2.96 earnings per share for the current fiscal year.

Insider Activity at FormFactor

In other news, CEO Mike Slessor sold 17,510 shares of the firm's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $104.73, for a total value of $1,833,822.30. Following the completion of the sale, the chief executive officer owned 466,694 shares of the company's stock, valued at $48,876,862.62. This trade represents a 3.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kelley Steven-Waiss sold 2,100 shares of FormFactor stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total value of $201,810.00. Following the transaction, the director owned 24,426 shares in the company, valued at $2,347,338.60. This represents a 7.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 30,708 shares of company stock worth $3,425,102. 0.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On FormFactor

Several hedge funds have recently bought and sold shares of FORM. Caxton Associates LLP boosted its position in FormFactor by 78.1% during the 3rd quarter. Caxton Associates LLP now owns 2,627 shares of the semiconductor company's stock worth $392,000 after acquiring an additional 1,152 shares during the period. Cvfg LLC purchased a new position in FormFactor during the 3rd quarter valued at about $1,570,000. Meeder Advisory Services Inc. grew its stake in FormFactor by 8.8% during the 3rd quarter. Meeder Advisory Services Inc. now owns 3,547 shares of the semiconductor company's stock valued at $530,000 after acquiring an additional 288 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of FormFactor by 109.5% in the 3rd quarter. First Trust Advisors LP now owns 342,928 shares of the semiconductor company's stock valued at $51,203,000 after purchasing an additional 179,222 shares during the period. Finally, Advisors Asset Management Inc. acquired a new position in shares of FormFactor in the 3rd quarter valued at about $383,000. 98.76% of the stock is owned by hedge funds and other institutional investors.

About FormFactor

FormFactor, Inc. designs and manufactures testing and measurement products used in the development and production of semiconductor devices. Its offerings include probe cards, which connect test equipment to semiconductor wafers, as well as probe stations and related systems for electrical and thermal characterization. The company's products support testing at multiple stages of semiconductor development and manufacturing, including work on advanced integrated circuits and other complex devices. FormFactor serves customers around the world, including semiconductor manufacturers and research organizations.

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