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

Key Points

• FormFactor shares gapped down Friday, opening at $115.14 after closing at $119.44 the prior day. The stock last traded around $115.08.
• Despite the drop, analysts remain broadly positive: the stock has a Moderate Buy consensus rating with an average price target of $132.45. Recent upgrades came from Zacks Research, Citigroup, and B. Riley Financial.
• The company recently posted strong quarterly results, earning $0.56 per share versus $0.45 expected and lifting revenue 31.9% year over year. However, insiders have sold shares in recent months, including notable sales by directors Sheri Rhodes and Dennis Thomas St.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $119.44, but opened at $115.14. FormFactor shares last traded at $115.0820, with a volume of 99,103 shares.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Zacks Research raised FormFactor from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 26th. Cantor Fitzgerald reiterated an "overweight" rating and set a $175.00 target price on shares of FormFactor in a research report on Monday, April 27th. Citigroup raised their price objective on shares of FormFactor to $165.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. B. Riley Financial upgraded FormFactor from a "neutral" rating to a "buy" rating and set a $165.00 price objective on the stock in a research report on Thursday, June 11th. Finally, Weiss Ratings upgraded FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, FormFactor currently has a consensus rating of "Moderate Buy" and an average price target of $132.45.

FormFactor Price Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.69 and a current ratio of 4.55. The company has a 50-day simple moving average of $132.83 and a two-hundred day simple moving average of $106.53. The stock has a market cap of $9.03 billion, a price-to-earnings ratio of 133.24 and a beta of 1.22.

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

Insiders Place Their Bets

In related news, Director Sheri Rhodes sold 6,328 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $125.40, for a total value of $793,531.20. Following the completion of the sale, the director directly owned 5,375 shares in the company, valued at $674,025. The trade was a 54.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Dennis Thomas St sold 2,800 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $151.49, for a total value of $424,172.00. Following the transaction, the director owned 29,073 shares in the company, valued at approximately $4,404,268.77. This trade represents a 8.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 49,828 shares of company stock worth $6,306,587 over the last three months. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Mercer Global Advisors Inc. ADV lifted its stake 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 purchasing an additional 157 shares during the last quarter. Blue Trust Inc. increased its stake in shares of FormFactor by 1.9% in the 1st quarter. Blue Trust Inc. now owns 10,542 shares of the semiconductor company's stock valued at $1,022,000 after purchasing an additional 196 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of FormFactor by 128.9% during the 4th quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company's stock worth $28,000 after buying an additional 281 shares in the last quarter. Maryland State Retirement & Pension System raised its holdings in shares of FormFactor by 2.7% during the 4th quarter. Maryland State Retirement & Pension System now owns 11,385 shares of the semiconductor company's stock worth $635,000 after buying an additional 299 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC lifted its position in shares of FormFactor by 2.4% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 16,073 shares of the semiconductor company's stock worth $897,000 after buying an additional 370 shares during the last quarter. 98.76% of the stock is owned by institutional investors.

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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