B. Riley Financial Downgrades FormFactor (NASDAQ:FORM) to Neutral

Key Points

• B. Riley downgraded FormFactor from "buy" to "neutral" and set a $130 price target, implying roughly a 5% upside from the current share price.
• Analyst consensus is still a "Moderate Buy" but the average price target is only $87.91, well below the stock's current level.
• Fundamentals: FormFactor beat Q4 estimates (EPS $0.46 vs $0.35; revenue $215.2M, +13.6% YoY) and guided Q1 EPS of $0.41–0.49, while insiders sold roughly $6.0M of stock over the past three months.

FormFactor (NASDAQ:FORM - Get Free Report) was downgraded by equities research analysts at B. Riley Financial from a "buy" rating to a "neutral" rating in a note issued to investors on Monday. They currently have a $130.00 target price on the semiconductor company's stock. B. Riley Financial's price objective would suggest a potential upside of 5.01% from the company's current price.

Several other analysts also recently issued reports on the company. Cantor Fitzgerald upped their price objective on FormFactor from $100.00 to $125.00 and gave the company an "overweight" rating in a research report on Monday, April 6th. Freedom Capital upgraded FormFactor to a "hold" rating in a research report on Tuesday, January 27th. Zacks Research upgraded FormFactor from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, January 13th. Evercore upped their price objective on FormFactor from $50.00 to $80.00 and gave the company an "in-line" rating in a research report on Thursday, February 5th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of FormFactor in a research report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $87.91.

FormFactor Price Performance

FORM opened at $123.80 on Monday. The business's fifty day moving average is $95.83 and its two-hundred day moving average is $69.30. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.60 and a current ratio of 4.50. The company has a market cap of $9.65 billion, a price-to-earnings ratio of 179.42 and a beta of 1.04. FormFactor has a one year low of $23.78 and a one year high of $126.30.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its earnings results on Wednesday, February 4th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.11. The company had revenue of $215.16 million for the quarter, compared to the consensus estimate of $210.29 million. FormFactor had a return on equity of 6.64% and a net margin of 6.93%.FormFactor's quarterly revenue was up 13.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.27 earnings per share. FormFactor has set its Q1 2026 guidance at 0.410-0.490 EPS. Analysts anticipate that FormFactor will post 0.9 EPS for the current fiscal year.

Insider Activity at FormFactor

In other FormFactor news, Director Brian C. White sold 2,300 shares of the company's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $100.01, for a total transaction of $230,023.00. Following the completion of the sale, the director directly owned 10,556 shares in the company, valued at $1,055,705.56. This represents a 17.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Aric Brendan Mckinnis sold 3,462 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $90.42, for a total value of $313,034.04. Following the sale, the chief financial officer owned 11,140 shares of the company's stock, valued at $1,007,278.80. This represents a 23.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 66,276 shares of company stock valued at $6,001,771 over the last three months. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On FormFactor

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its position in shares of FormFactor by 4.0% in the second quarter. Bank of America Corp DE now owns 2,806,905 shares of the semiconductor company's stock worth $96,586,000 after buying an additional 108,487 shares during the period. Reinhart Partners LLC. boosted its position in shares of FormFactor by 26.3% in the third quarter. Reinhart Partners LLC. now owns 2,404,854 shares of the semiconductor company's stock worth $87,585,000 after buying an additional 500,156 shares during the period. Alliancebernstein L.P. boosted its position in shares of FormFactor by 3.2% in the third quarter. Alliancebernstein L.P. now owns 2,397,161 shares of the semiconductor company's stock worth $87,305,000 after buying an additional 73,644 shares during the period. Morgan Stanley boosted its position in shares of FormFactor by 98.5% in the fourth quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company's stock worth $126,708,000 after buying an additional 1,127,146 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of FormFactor by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,885,847 shares of the semiconductor company's stock worth $105,208,000 after buying an additional 7,150 shares during the period. 98.76% of the stock is currently owned by institutional investors and hedge funds.

FormFactor Company Profile

FormFactor, Inc NASDAQ: FORM is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.

FormFactor's product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.

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