FormFactor (NASDAQ:FORM) Shares Gap Down - Time to Sell?

Key Points

• FormFactor shares gapped down Tuesday, opening at $134.10 from $143.93 and last trading at $131.33 (down ~7.4%) on heavy volume of 746,357 shares, despite an earnings beat and raised Q1 EPS guidance.
• Analyst views are mixed — price targets span roughly $50–$175, with a consensus rating of "Moderate Buy" and a consensus price target of $92.45, which is well below the recent share price.
• Insiders have been net sellers (64,482 shares valued at about $6.44M in the last 90 days) even though institutional investors hold roughly 98.76% of the stock.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $143.93, but opened at $134.10. FormFactor shares last traded at $131.33, with a volume of 746,357 shares changing hands.

Analysts Set New Price Targets

A number of analysts recently weighed in on FORM shares. Northland Securities set a $70.00 target price on FormFactor in a research report on Thursday, February 5th. Cantor Fitzgerald restated an "overweight" rating and issued a $175.00 target price on shares of FormFactor in a research report on Monday. Loop Capital set a $64.00 target price on FormFactor in a research report on Tuesday, January 27th. Citigroup boosted their target price on FormFactor from $96.00 to $98.00 and gave the stock a "buy" rating in a research report on Thursday, February 5th. Finally, Evercore boosted their target price on FormFactor from $50.00 to $80.00 and gave the stock an "in-line" rating in a research report on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $92.45.

FormFactor Stock Down 7.4%

The company has a current ratio of 4.50, a quick ratio of 3.60 and a debt-to-equity ratio of 0.01. The stock has a 50 day simple moving average of $107.18 and a 200 day simple moving average of $77.12. The firm has a market capitalization of $10.39 billion, a PE ratio of 193.48 and a beta of 1.04.

FormFactor (NASDAQ:FORM - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The semiconductor company reported $0.46 EPS for the quarter, topping analysts' consensus estimates of $0.35 by $0.11. The business had revenue of $215.16 million for the quarter, compared to analysts' expectations of $210.29 million. FormFactor had a return on equity of 6.64% and a net margin of 6.93%.The business's quarterly revenue was up 13.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.27 EPS. FormFactor has set its Q1 2026 guidance at 0.410-0.490 EPS. As a group, sell-side analysts forecast that FormFactor, Inc. will post 1.41 earnings per share for the current year.

Insider Activity

In other news, CFO Aric Brendan Mckinnis sold 3,462 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $90.42, for a total transaction of $313,034.04. Following the transaction, the chief financial officer directly owned 11,140 shares of the company's stock, valued at approximately $1,007,278.80. The trade was a 23.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Sheri Rhodes sold 7,634 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $92.61, for a total value of $706,984.74. Following the transaction, the director directly owned 10,356 shares in the company, valued at $959,069.16. This trade represents a 42.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 64,482 shares of company stock valued at $6,438,951. 0.79% of the stock is owned by insiders.

Institutional Investors Weigh In On FormFactor

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FORM. Salomon & Ludwin LLC purchased a new stake in FormFactor in the third quarter worth $25,000. Los Angeles Capital Management LLC purchased a new stake in shares of FormFactor in the fourth quarter worth $25,000. UMB Bank n.a. grew its stake in shares of FormFactor by 128.9% in the fourth quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company's stock worth $28,000 after acquiring an additional 281 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of FormFactor by 84.4% in the third quarter. Jones Financial Companies Lllp now owns 990 shares of the semiconductor company's stock worth $35,000 after acquiring an additional 453 shares during the last quarter. Finally, Hantz Financial Services Inc. grew its stake in shares of FormFactor by 547.8% in the third quarter. Hantz Financial Services Inc. now owns 1,043 shares of the semiconductor company's stock worth $38,000 after acquiring an additional 882 shares during the last quarter. 98.76% of the stock is owned by hedge funds and other institutional investors.

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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