Royal Bank of Canada Sells 157,742 Shares of FormFactor, Inc. $FORM

Key Points

• Royal Bank of Canada cut its FormFactor stake by 26.9%, selling 157,742 shares in the first quarter and retaining 428,907 shares valued at approximately $41.6 million. Institutional investors collectively own 98.76% of the company.
• FormFactor reported strong quarterly results, with EPS of $0.82 beating the $0.61 consensus and revenue rising 31.9% year over year to $258.24 million. Management guided for third-quarter EPS of $0.77–$0.95, supported by AI, high-bandwidth memory and systems demand.
• Analyst sentiment remains generally positive, with six Buy and five Hold ratings and an average price target of $127.45, although some firms cited valuation concerns and reduced targets. Company insiders also sold 38,534 shares worth $4.86 million over the past three months.

Royal Bank of Canada trimmed its stake in FormFactor, Inc. (NASDAQ:FORM - Free Report) by 26.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 428,907 shares of the semiconductor company's stock after selling 157,742 shares during the quarter. Royal Bank of Canada owned approximately 0.55% of FormFactor worth $41,599,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also bought and sold shares of the company. Victory Capital Management Inc. increased its position in FormFactor by 5,596.8% in the fourth quarter. Victory Capital Management Inc. now owns 1,256,545 shares of the semiconductor company's stock worth $70,090,000 after buying an additional 1,234,488 shares during the last quarter. Morgan Stanley grew its stake in shares of FormFactor by 98.5% during the 4th quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company's stock worth $126,708,000 after acquiring an additional 1,127,146 shares during the period. Fuller & Thaler Asset Management Inc. purchased a new stake in FormFactor in the 4th quarter worth about $60,495,000. Norges Bank purchased a new stake in FormFactor in the 4th quarter worth about $31,451,000. Finally, Channing Capital Management LLC raised its stake in FormFactor by 115.5% in the 4th quarter. Channing Capital Management LLC now owns 1,000,729 shares of the semiconductor company's stock valued at $55,821,000 after acquiring an additional 536,448 shares during the period. Hedge funds and other institutional investors own 98.76% of the company's stock.

Analyst Ratings Changes

A number of brokerages have weighed in on FORM. Northland Securities set a $118.00 target price on shares of FormFactor in a research report on Thursday, April 30th. B. Riley Financial upgraded shares of FormFactor from a "neutral" rating to a "buy" rating and set a $165.00 price target on the stock in a research note on Thursday, June 11th. Stifel Nicolaus set a $135.00 price objective on shares of FormFactor in a research note on Thursday, April 30th. Craig Hallum upgraded FormFactor from a "hold" rating to a "buy" rating and set a $175.00 target price on the stock in a research report on Tuesday, May 12th. Finally, Citigroup raised their price target on FormFactor to $165.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Six research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, FormFactor currently has an average rating of "Moderate Buy" and an average price target of $127.45.

FormFactor Stock Performance

NASDAQ FORM opened at $106.20 on Monday. FormFactor, Inc. has a 1 year low of $26.08 and a 1 year high of $160.27. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.08 and a quick ratio of 3.34. The stock has a market capitalization of $8.28 billion, a PE ratio of 72.74 and a beta of 1.25. The company's 50 day simple moving average is $124.07 and its two-hundred day simple moving average is $111.69.

FormFactor (NASDAQ:FORM - Get Free Report) last released its quarterly 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 firm had revenue of $258.24 million during the quarter, compared to analyst estimates of $240.00 million. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The business's revenue for the quarter was up 31.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.27 EPS. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Analysts predict that FormFactor, Inc. will post 2.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Rebeca Obregon-Jimenez sold 3,828 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $126.47, for a total value of $484,127.16. Following the sale, the director directly owned 7,875 shares of the company's stock, valued at $995,951.25. This trade represents a 32.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Sheri Rhodes sold 6,328 shares of FormFactor stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $125.40, for a total transaction of $793,531.20. Following the sale, the director owned 5,375 shares of the company's stock, valued at approximately $674,025. The trade was a 54.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 38,534 shares of company stock worth $4,864,118. 0.79% of the stock is owned by corporate insiders.

More FormFactor News

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: FormFactor reported second-quarter EPS of $0.82, well above the $0.61 consensus estimate, while revenue rose 31.9% year over year to $258.24 million, exceeding expectations of $240 million. FormFactor's Q2 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management projected third-quarter EPS of $0.77–$0.95 and revenue of $260 million–$280 million, both above analyst consensus. The outlook reflects continued strength in high-bandwidth memory and AI-related demand, plus a systems recovery. FormFactor Q2 Earnings Call Highlights
• Positive Sentiment: The company cited record profitability, accelerating AI and high-performance-computing demand, capacity expansion, and a planned Farmers Branch facility ramp beginning in the fourth quarter. These developments could support longer-term growth if demand persists. FormFactor Q3 Forecast and Farmers Branch Ramp
• Neutral Sentiment: Recent commentary views the earnings improvement as encouraging but suggests future upside depends on execution, continued semiconductor investment, and the timing of longer-term opportunities such as co-packaged optics. FormFactor Q2 Review
• Negative Sentiment: TD Cowen lowered its price target from $150 to $100 and maintained a Hold rating, signaling limited near-term upside at the current valuation. Needham also maintained a Hold rating, citing strong near-term performance but a back-end-loaded growth outlook. FormFactor Rated Hold
• Negative Sentiment: A comparative Zacks analysis favored Aehr Test Systems over FormFactor for long-term growth, citing Aehr’s record bookings, AI-related backlog, and expanding burn-in portfolio. FORM vs. AEHR

FormFactor 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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