FormFactor (NASDAQ:FORM) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised FormFactor’s price target to $110 from $100 while maintaining a “Hold” rating, implying 9.41% upside from the prior close. Analysts overall assign the stock a “Moderate Buy” consensus with an average target of $132.67.
• FormFactor reported strong quarterly results, with revenue up 38.4% year over year to $280.55 million and EPS of $1.04 versus the $0.86 consensus estimate. Management expects approximately $285 million in fourth-quarter revenue, though projected EPS of $0.84 could signal sequential earnings pressure.
• Shares fell 8.9% to $100.53 amid valuation concerns, with the stock trading at roughly 69 times earnings. Recent insider selling, including transactions by the CEO and a director, may have further weighed on investor sentiment.

FormFactor (NASDAQ:FORM - Get Free Report) had its price objective raised by stock analysts at TD Cowen from $100.00 to $110.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "hold" rating on the semiconductor company's stock. TD Cowen's price objective points to a potential upside of 9.41% from the stock's previous close.

Other analysts have also issued research reports about the stock. Weiss Ratings raised shares of FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, October 16th. Evercore set a $150.00 target price on FormFactor in a report on Thursday, July 30th. Wall Street Zen lowered FormFactor from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 9th. Deutsche Bank Aktiengesellschaft started coverage on shares of FormFactor in a research report on Wednesday, September 30th. They set a "buy" rating and a $200.00 price target on the stock. Finally, Cantor Fitzgerald reissued an "overweight" rating on shares of FormFactor in a report on Tuesday, September 22nd. Seven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $132.67.

FormFactor Stock Down 8.9%

Shares of NASDAQ:FORM traded down $9.78 on Thursday, reaching $100.53. The company had a trading volume of 1,703,710 shares, compared to its average volume of 1,642,645. The company has a quick ratio of 3.34, a current ratio of 4.08 and a debt-to-equity ratio of 0.01. The stock has a 50-day moving average price of $117.16 and a 200 day moving average price of $113.21. The stock has a market capitalization of $7.84 billion, a P/E ratio of 68.84 and a beta of 1.18. FormFactor has a twelve month low of $47.33 and a twelve month high of $160.27.

FormFactor (NASDAQ:FORM - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.18. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The company had revenue of $280.55 million during the quarter, compared to analysts' expectations of $270.52 million. During the same period in the prior year, the company earned $0.33 earnings per share. The business's quarterly revenue was up 38.4% compared to the same quarter last year. On average, equities analysts expect that FormFactor will post 2.70 EPS for the current year.

Insider Buying and Selling at FormFactor

In other FormFactor news, CEO Mike Slessor sold 17,510 shares of the stock in a transaction dated 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 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 sale was disclosed in a legal filing 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 stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $96.10, for a total value of $201,810.00. Following the completion of the sale, the director owned 24,426 shares of the company's stock, valued at $2,347,338.60. This trade represents a 7.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 46,710 shares of company stock worth $5,520,564 in the last ninety days. 0.79% of the stock is currently owned by insiders.

Hedge Funds Weigh In On FormFactor

Institutional investors have recently modified their holdings of the business. Vise Technologies Inc. lifted its stake in FormFactor by 43.3% in the 3rd quarter. Vise Technologies Inc. now owns 5,642 shares of the semiconductor company's stock valued at $842,000 after acquiring an additional 1,706 shares in the last quarter. State of Wyoming grew its stake in shares of FormFactor by 163.1% during the 3rd quarter. State of Wyoming now owns 4,533 shares of the semiconductor company's stock worth $677,000 after acquiring an additional 2,810 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al raised its holdings in shares of FormFactor by 39.1% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 17,800 shares of the semiconductor company's stock valued at $2,658,000 after purchasing an additional 5,000 shares during the last quarter. China Universal Asset Management Co. Ltd. raised its holdings in shares of FormFactor by 37.6% in the third quarter. China Universal Asset Management Co. Ltd. now owns 12,800 shares of the semiconductor company's stock valued at $1,744,000 after purchasing an additional 3,500 shares during the last quarter. Finally, Hanseatic Management Services Inc. lifted its position in shares of FormFactor by 1.7% in the third quarter. Hanseatic Management Services Inc. now owns 14,406 shares of the semiconductor company's stock worth $2,151,000 after purchasing an additional 234 shares in the last quarter. Institutional investors own 98.76% of the company's stock.

FormFactor News Roundup

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: FormFactor reported record third-quarter revenue of $280.5 million, up 38.4% year over year and 8.6% sequentially. Adjusted EPS was $1.04, exceeding the $0.86 consensus estimate, while revenue also topped expectations. FormFactor Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: GAAP results also improved sharply: diluted EPS rose to $0.93 from $0.20 a year earlier, gross margin expanded to 54.7% from 39.8%, and operating cash flow increased to $104.3 million from $27.0 million. Growth was supported by Foundry & Logic, Systems, and co-packaged optics demand. FormFactor Reports 2026 Third Quarter Results
• Positive Sentiment: Management said broad-based demand remains strong and outlined a potential $400 million annual probe-card capacity exit rate by 2027 as its Farmers Branch facility ramps, supporting the longer-term semiconductor and AI-related growth outlook. FormFactor Outlines Probe Card Capacity Expansion
• Neutral Sentiment: FormFactor forecast fourth-quarter revenue of approximately $285 million, plus or minus $10 million. While this implies continued growth, investors may have expected a larger outlook increase after the third-quarter beat.
• Negative Sentiment: Fourth-quarter GAAP diluted EPS guidance of $0.84, plus or minus $0.09, is below the third quarter’s $0.93, potentially raising concerns about sequential earnings pressure despite solid revenue expectations.
• Negative Sentiment: The stock’s elevated valuation—about 69 times earnings—left little room for disappointment, and the shares fell after hours despite the strong results. Reports also noted substantial insider selling, including sales by CEO Mike Slessor, which may have added to investor caution.

FormFactor Company Profile

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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