FormFactor (NASDAQ:FORM) Shares Gap Down After Insider Selling

Key Points

• FormFactor shares gapped down from a prior close of $138.16 to open at $129.28, later trading near $126.22 after volume of 228,345 shares.
• CEO Mike Slessor sold 16,002 shares for approximately $2.10 million under a pre-arranged Rule 10b5-1 plan, reducing his ownership by 3.2%.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and $127.45 average price target. FormFactor also exceeded quarterly expectations, reporting $0.82 EPS versus the $0.61 consensus and 31.9% year-over-year revenue growth.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report)'s stock price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $138.16, but opened at $129.28. FormFactor shares last traded at $126.2180, with a volume of 228,345 shares trading hands.

Specifically, CEO Mike Slessor sold 16,002 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $130.95, for a total transaction of $2,095,461.90. Following the completion of the sale, the chief executive officer owned 484,204 shares of the company's stock, valued at $63,406,513.80. This represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

FORM has been the topic of several analyst reports. Evercore set a $150.00 price target on shares of FormFactor in a report on Thursday, July 30th. TD Cowen lowered their price objective on FormFactor from $150.00 to $100.00 and set a "hold" rating for the company in a research report on Thursday, July 30th. Weiss Ratings upgraded FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, August 6th. Stifel Nicolaus set a $135.00 target price on FormFactor in a research report on Thursday, April 30th. Finally, Citigroup increased their price target on FormFactor to $165.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Six analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, FormFactor presently has a consensus rating of "Moderate Buy" and an average target price of $127.45.

FormFactor Price Performance

The stock's 50 day simple moving average is $123.12 and its 200-day simple moving average is $115.20. The firm has a market cap of $9.77 billion, a price-to-earnings ratio of 85.36 and a beta of 1.25. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.34 and a current ratio of 4.08.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.61 by $0.21. The business had revenue of $258.24 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.27 earnings per share. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Equities research analysts anticipate that FormFactor, Inc. will post 2.7 EPS for the current fiscal year.

Institutional Trading of FormFactor

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Keating Financial Advisory Services Inc. acquired a new position in shares of FormFactor in the second quarter valued at about $25,000. Persistent Asset Partners Ltd purchased a new position in shares of FormFactor in the second quarter worth about $43,000. Los Angeles Capital Management LLC acquired a new stake in shares of FormFactor during the fourth quarter worth about $25,000. Allworth Financial LP acquired a new stake in shares of FormFactor during the second quarter worth about $72,000. Finally, USA Financial Formulas purchased a new stake in FormFactor in the first quarter valued at approximately $46,000. Institutional investors and hedge funds 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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