FormFactor (NASDAQ:FORM) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded FormFactor to “strong-buy” from “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $127.45.
• FormFactor reported strong quarterly results, with EPS of $0.82 versus the $0.61 consensus and revenue of $258.24 million, up 31.9% year over year. Management guided for third-quarter EPS of $0.77–$0.95 and revenue of $260 million–$280 million, supported by AI and high-bandwidth-memory demand.
• Despite positive earnings momentum and heavy institutional ownership of 98.76%, some analysts remain cautious: TD Cowen cut its price target to $100 and maintained a “hold” rating, while insiders sold $4.86 million of shares over the past 90 days.

FormFactor (NASDAQ:FORM - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

A number of other equities analysts also recently commented on the stock. B. Riley Financial upgraded shares of FormFactor from a "neutral" rating to a "buy" rating and set a $165.00 price objective for the company in a research note on Thursday, June 11th. Stifel Nicolaus set a $135.00 target price on FormFactor in a research report on Thursday, April 30th. Northland Securities set a $118.00 target price on FormFactor in a report on Thursday, April 30th. TD Cowen reduced their price target on FormFactor from $150.00 to $100.00 and set a "hold" rating for the company in a research report on Thursday. Finally, Zacks Research lowered FormFactor from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Six equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $127.45.

FormFactor Stock Performance

Shares of FORM stock opened at $106.20 on Friday. The company's fifty day simple moving average is $124.07 and its 200-day simple moving average is $111.42. The company has a quick ratio of 3.69, a current ratio of 4.08 and a debt-to-equity ratio of 0.01. The firm has a market cap of $8.28 billion, a PE ratio of 72.74 and a beta of 1.22. FormFactor has a 12 month low of $26.08 and a 12 month high of $160.27.

FormFactor (NASDAQ:FORM - Get Free Report) last released its earnings results on Wednesday, July 29th. The semiconductor company reported $0.82 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.21. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The business had revenue of $258.24 million during the quarter, compared to the consensus estimate of $240.00 million. During the same quarter last year, the firm earned $0.27 earnings per share. The firm's revenue for the quarter was up 31.9% compared to the same quarter last year. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Equities research analysts expect that FormFactor will post 2.03 EPS for the current fiscal year.

Insider Activity at FormFactor

In other news, Director Dennis Thomas St sold 2,800 shares of FormFactor stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $151.49, for a total transaction of $424,172.00. Following the completion of the transaction, the director directly owned 29,073 shares in the company, valued at approximately $4,404,268.77. The trade was a 8.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Rebeca Obregon-Jimenez sold 3,828 shares of the stock in a transaction 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 completion of the sale, the director owned 7,875 shares in the company, valued at approximately $995,951.25. This trade represents a 32.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 38,534 shares of company stock worth $4,864,118 over the last ninety days. Company insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FORM. Bank of America Corp DE boosted its holdings in shares of FormFactor by 4.0% during 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 acquiring an additional 108,487 shares during the period. Alliancebernstein L.P. grew 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 valued at $87,305,000 after purchasing an additional 73,644 shares during the last quarter. Morgan Stanley increased its stake in shares of FormFactor by 98.5% during the fourth quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company's stock worth $126,708,000 after purchasing an additional 1,127,146 shares during the period. Geode Capital Management LLC increased its stake in shares of FormFactor by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 1,885,847 shares of the semiconductor company's stock worth $105,208,000 after purchasing an additional 7,150 shares during the period. Finally, Sei Investments Co. lifted its holdings in FormFactor by 3.5% during the 3rd quarter. Sei Investments Co. now owns 1,640,144 shares of the semiconductor company's stock worth $59,734,000 after purchasing an additional 55,101 shares during the last quarter. 98.76% of the stock is owned by institutional investors.

Key Stories Impacting FormFactor

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

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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