FormFactor (NASDAQ:FORM) Posts Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• FormFactor beat quarterly expectations: The semiconductor company reported $0.82 in EPS versus the $0.61 consensus estimate, while revenue of $258.24 million exceeded forecasts of $240 million.
• Shares fell 5.4% to $83.45 despite the earnings beat. The stock remains well below its 52-week high of $160.27 and trades at a price-to-earnings ratio of 95.92.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $132.45; however, insiders have sold approximately $4.86 million of stock over the past 90 days.

FormFactor (NASDAQ:FORM - Get Free Report) posted its earnings results on Wednesday. The semiconductor company reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.21, FiscalAI reports. The business had revenue of $258.24 million for the quarter, compared to analyst estimates of $240.00 million. FormFactor had a net margin of 8.14% and a return on equity of 9.31%.

FormFactor Trading Down 5.4%

NASDAQ:FORM traded down $4.78 on Wednesday, hitting $83.45. 2,369,207 shares of the stock were exchanged, compared to its average volume of 1,714,126. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.69 and a current ratio of 4.55. FormFactor has a 52 week low of $26.08 and a 52 week high of $160.27. The stock has a market capitalization of $6.51 billion, a price-to-earnings ratio of 95.92 and a beta of 1.22. The company's 50-day moving average price is $125.81 and its 200 day moving average price is $111.06.

Insider Buying and Selling

In related news, Director Sheri Rhodes sold 6,328 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $125.40, for a total value of $793,531.20. Following the transaction, the director directly owned 5,375 shares in the company, valued at $674,025. This represents a 54.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Brian C. White sold 3,250 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $126.00, for a total transaction of $409,500.00. Following the completion of the transaction, the director directly owned 8,653 shares in the company, valued at approximately $1,090,278. The trade was a 27.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 38,534 shares of company stock worth $4,864,118. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Virtu Financial LLC acquired a new stake in shares of FormFactor during the fourth quarter worth $397,000. T. Rowe Price Investment Management Inc. lifted its stake in FormFactor by 210,121.6% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 359,479 shares of the semiconductor company's stock valued at $20,052,000 after buying an additional 359,308 shares during the period. Invesco Ltd. lifted its stake in FormFactor by 6.4% in the fourth quarter. Invesco Ltd. now owns 332,927 shares of the semiconductor company's stock valued at $18,571,000 after buying an additional 20,052 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in FormFactor by 2.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,509 shares of the semiconductor company's stock worth $419,000 after buying an additional 157 shares during the last quarter. Finally, State of Tennessee Department of Treasury boosted its holdings in FormFactor by 43.7% during the fourth quarter. State of Tennessee Department of Treasury now owns 34,275 shares of the semiconductor company's stock worth $1,912,000 after buying an additional 10,418 shares during the last quarter. Institutional investors and hedge funds own 98.76% of the company's stock.

Analysts Set New Price Targets

FORM has been the topic of a number of research analyst reports. Weiss Ratings lowered FormFactor from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, July 15th. TD Cowen lifted their price objective on FormFactor from $80.00 to $150.00 and gave the company a "hold" rating in a research report on Thursday, April 30th. Citigroup boosted their price objective on FormFactor to $165.00 and gave the stock a "buy" rating 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 report on Tuesday, May 12th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of FormFactor in a research note on Monday. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $132.45.

About FormFactor

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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