FormFactor (NASDAQ:FORM) Shares Down 7.5% - Should You Sell?

Key Points

• FormFactor shares fell 7.5% on Thursday, even though trading volume was far below average. The stock last traded at $136.09 after closing at $147.13 the prior day.
• Recent analyst commentary has been mixed but generally constructive, with multiple firms raising price targets and ratings. The consensus rating is Moderate Buy, with a consensus target price of $132.45.
• The company reported strong quarterly results, beating EPS expectations and posting 31.9% revenue growth year over year. Management also issued Q2 2026 EPS guidance of 0.570 to 0.650.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) fell 7.5% on Thursday . The stock traded as low as $138.74 and last traded at $136.0930. Approximately 191,541 shares were traded during trading, a decline of 89% from the average daily volume of 1,734,749 shares. The stock had previously closed at $147.13.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. TD Cowen upped their price target on FormFactor from $80.00 to $150.00 and gave the stock a "hold" rating in a research note on Thursday, April 30th. Craig Hallum raised shares of 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. Northland Securities set a $118.00 price target on shares of FormFactor in a research note on Thursday, April 30th. Zacks Research raised shares of FormFactor from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 26th. Finally, Cantor Fitzgerald reissued an "overweight" rating and set a $175.00 price objective on shares of FormFactor in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $132.45.

FormFactor Stock Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 4.55 and a quick ratio of 3.69. The business has a 50 day moving average price of $136.17 and a 200 day moving average price of $103.93. The stock has a market capitalization of $9.78 billion, a PE ratio of 144.65 and a beta of 1.21.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The semiconductor company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.11. FormFactor had a return on equity of 9.31% and a net margin of 8.14%.The firm had revenue of $226.14 million during the quarter, compared to analyst estimates of $225.54 million. During the same quarter in the previous year, the firm earned $0.23 EPS. FormFactor's quarterly revenue was up 31.9% compared to the same quarter last year. FormFactor has set its Q2 2026 guidance at 0.570-0.650 EPS. As a group, equities research analysts expect that FormFactor, Inc. will post 2.03 earnings per share for the current year.

Insider Transactions at FormFactor

In other news, Director Rebeca Obregon-Jimenez sold 3,828 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $126.47, for a total transaction of $484,127.16. Following the sale, the director owned 7,875 shares in the company, valued at $995,951.25. This represents a 32.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Mike Slessor sold 11,890 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $121.35, for a total transaction of $1,442,851.50. Following the completion of the transaction, the chief executive officer owned 435,147 shares of the company's stock, valued at approximately $52,805,088.45. The trade was a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 49,828 shares of company stock valued at $6,306,587. 0.79% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Empowered Funds LLC purchased a new stake in shares of FormFactor during the first quarter valued at $269,000. Parallel Advisors LLC boosted its holdings in shares of FormFactor by 1,077.3% during the 1st quarter. Parallel Advisors LLC now owns 6,381 shares of the semiconductor company's stock valued at $619,000 after acquiring an additional 5,839 shares during the last quarter. Glenmede Trust Co. NA purchased a new position in shares of FormFactor during the first quarter valued at approximately $322,000. Cim Investment Management Inc. lifted its position in FormFactor by 10.8% during the first quarter. Cim Investment Management Inc. now owns 5,071 shares of the semiconductor company's stock valued at $492,000 after purchasing an additional 493 shares during the period. Finally, Edgestream Partners L.P. bought a new position in FormFactor during the first quarter valued at approximately $4,450,000. Hedge funds and other institutional investors own 98.76% of the company's stock.

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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