FormFactor (NASDAQ:FORM) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded FormFactor from “strong buy” to “hold,” though the broader analyst consensus remains “moderate buy” with an average price target of $131.83.
• FormFactor shares opened at $107.70, down 2.2%, and remain below their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $8.4 billion.
• The company recently exceeded quarterly earnings and revenue expectations, reporting $0.82 in EPS and $258.24 million in revenue, while insiders have sold 46,710 shares worth about $5.5 million over the past 90 days.

FormFactor (NASDAQ:FORM - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

A number of other brokerages have also recently issued reports on FORM. TD Cowen dropped their target price on shares of FormFactor from $150.00 to $100.00 and set a "hold" rating for the company in a report on Thursday, July 30th. Weiss Ratings raised FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday. B. Riley Financial reissued a "buy" rating on shares of FormFactor in a research note on Monday. Cantor Fitzgerald restated an "overweight" rating on shares of FormFactor in a report on Tuesday, September 22nd. Finally, Stifel Nicolaus set a $115.00 price objective on FormFactor in a report on Tuesday, October 13th. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $131.83.

FormFactor Stock Down 2.2%

FormFactor stock opened at $107.70 on Monday. The stock's 50 day moving average price is $119.84 and its 200 day moving average price is $123.88. FormFactor has a 1-year low of $40.60 and a 1-year high of $160.27. The company has a market cap of $8.40 billion, a PE ratio of 73.77 and a beta of 1.18. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.08 and a quick ratio of 3.34.

FormFactor (NASDAQ:FORM - Get Free Report) last released its earnings results on Wednesday, July 29th. The semiconductor company reported $0.82 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.21. The company had revenue of $258.24 million during the quarter, compared to the consensus estimate of $240.00 million. FormFactor had a return on equity of 13.44% and a net margin of 12.80%. FormFactor's quarterly revenue was up 31.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.27 earnings per share. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. On average, sell-side analysts predict that FormFactor will post 2.70 EPS for the current fiscal year.

Insider Transactions at FormFactor

In other news, CEO Mike Slessor sold 17,510 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $104.73, for a total value of $1,833,822.30. Following the sale, the chief executive officer directly owned 466,694 shares in the company, valued at $48,876,862.62. This represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kelley Steven-Waiss sold 2,100 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $96.10, for a total transaction of $201,810.00. Following the transaction, the director directly owned 24,426 shares of the company's stock, valued at approximately $2,347,338.60. This trade represents a 7.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 46,710 shares of company stock valued at $5,520,564. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On FormFactor

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE acquired a new position in FormFactor in the 2nd quarter valued at about $285,257,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in FormFactor in the 2nd quarter valued at about $2,047,000. Public Employees Retirement System of Ohio acquired a new stake in shares of FormFactor during the 2nd quarter worth about $3,940,000. The Manufacturers Life Insurance Company acquired a new stake in shares of FormFactor during the 2nd quarter worth about $4,108,000. Finally, Concurrent Investment Advisors LLC acquired a new stake in shares of FormFactor during the 2nd quarter worth about $3,919,000. Hedge funds and other institutional investors own 98.76% of the company's stock.

About FormFactor

FormFactor, Inc is a semiconductor test and measurement company that designs and manufactures equipment and components used to evaluate integrated circuits during the wafer fabrication and production process. Its products help semiconductor manufacturers and suppliers measure electrical performance, identify defects and improve the development and manufacturing of advanced chips.

The company's portfolio includes probe cards used for wafer-level testing, as well as probe stations, analytical systems and related accessories for semiconductor engineering and production applications.

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