FormFactor (NASDAQ:FORM) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded FormFactor to “strong buy” from “buy.” MarketBeat’s broader analyst consensus is “Moderate Buy,” with a consensus price target of $139.73 based on seven Buy and five Hold ratings.
• FormFactor reported a strong quarter, with revenue rising 38.4% year over year to $280.55 million and EPS of $1.04, beating the $0.86 consensus estimate. AI-related demand for probe cards, HBM testing and photonics is supporting growth.
• Despite the positive outlook, investors face risks from manufacturing capacity constraints, potential margin pressure as a new Texas facility ramps, and significant recent insider selling.

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

FORM has been the subject of a number of other research reports. Weiss Ratings upgraded shares of FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, October 16th. Zacks Research lowered shares of FormFactor from a "strong-buy" rating to a "hold" rating in a report on Monday, October 19th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of FormFactor in a report on Wednesday, September 30th. They set a "buy" rating and a $200.00 price objective for the company. Cantor Fitzgerald reissued an "overweight" rating on shares of FormFactor in a research report on Tuesday, September 22nd. Finally, TD Cowen upped their target price on shares of FormFactor from $100.00 to $110.00 and gave the company a "hold" rating in a research note on Thursday. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, FormFactor currently has a consensus rating of "Moderate Buy" and a consensus target price of $139.73.

FormFactor Price Performance

Shares of FORM stock opened at $87.53 on Friday. The company has a market capitalization of $6.82 billion, a PE ratio of 39.97 and a beta of 1.18. The firm has a fifty day simple moving average of $116.24 and a 200-day simple moving average of $113.43. The company has a current ratio of 3.68, a quick ratio of 3.34 and a debt-to-equity ratio of 0.01. 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, topping the consensus estimate of $0.86 by $0.18. FormFactor had a net margin of 17.72% and a return on equity of 18.40%. The firm had revenue of $280.55 million for the quarter, compared to the consensus estimate of $270.52 million. During the same quarter in the previous year, the firm posted $0.33 EPS. The firm's quarterly revenue was up 38.4% on a year-over-year basis. Equities research analysts anticipate that FormFactor will post 2.76 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other FormFactor news, Director Kelley Steven-Waiss sold 2,100 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total transaction of $201,810.00. Following the completion of the sale, the director owned 24,426 shares in the company, valued at $2,347,338.60. The trade was a 7.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Mike Slessor sold 17,510 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $104.73, for a total transaction 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 trade represents a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 46,710 shares of company stock valued at $5,520,564. 0.79% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On FormFactor

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new position in FormFactor during the second quarter valued at about $1,676,772,000. Andar Capital Management HK Ltd acquired a new stake in FormFactor in the 2nd quarter valued at about $27,000,000. Bank of America Corp DE acquired a new stake in FormFactor in the 2nd quarter valued at about $285,257,000. Primecap Management Co. CA bought a new position in shares of FormFactor during the 2nd quarter valued at about $270,300,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of FormFactor in the 2nd quarter worth approximately $103,844,000. Institutional investors and hedge funds own 98.76% of the company's stock.

Key FormFactor News

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: FormFactor reported third-quarter revenue of $280.5 million, up 38.4% year over year, while non-GAAP earnings reached $1.04 per share versus the $0.86 consensus estimate. Revenue, gross margin and earnings exceeded the high end of management’s outlook. FormFactor's Q3 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Demand for probe cards, DRAM, photonics and foundry and logic applications is benefiting from AI-driven chip complexity. Growth in HBM4 testing and co-packaged optics could support longer-term expansion. FORM's HBM and Foundry Testing Gain From AI Demand
• Positive Sentiment: Analysts at Zacks characterized FORM as more attractive than Cohu because of its stronger profitability, cash generation and established AI-related revenue, while Zacks also added the stock to its Rank #1 Strong Buy list. FORM vs. COHU: Which Semiconductor Testing Stock is a Better Buy?
• Neutral Sentiment: Fourth-quarter guidance calls for revenue of $275 million to $295 million and EPS of $0.86 to $1.04, both above consensus at the midpoint for EPS but implying only modest sequential revenue growth.
• Negative Sentiment: Investors are concerned that FormFactor’s existing manufacturing footprint is approaching capacity limits. Productivity gains may moderate until the Farmers Branch, Texas, facility ramps, while start-up inefficiencies are expected to pressure near-term profitability and gross margins. FormFactor Sinks Despite Record Quarter as Factory Nears Capacity Limits
• Negative Sentiment: Recent trading data showed substantial insider selling, with no reported insider purchases over the past six months, adding a cautious signal for investors.

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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