FormFactor (NASDAQ:FORM) Shares Gap Up - Should You Buy?

Key Points

• FormFactor shares gapped up ahead of Thursday’s open, rising from a prior close of $111.59 to an opening price of $119.95 and last trading around $122.75.
• Analysts remain generally bullish: the stock has a “Moderate Buy” consensus rating, with an average price target of $132.45. Recent updates included higher targets from Citigroup ($165) and Cantor Fitzgerald ($175), plus a Zacks upgrade to strong-buy.
• The company’s latest quarter beat expectations, posting $0.56 EPS versus $0.45 expected and revenue of $226.14 million, up 31.9% year over year. However, insiders have been selling shares recently, including the CEO and a director.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) gapped up before the market opened on Thursday . The stock had previously closed at $111.59, but opened at $119.95. FormFactor shares last traded at $122.7450, with a volume of 218,108 shares.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Citigroup boosted their price objective on shares of FormFactor to $165.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Stifel Nicolaus set a $135.00 target price 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 report on Tuesday, May 26th. Cantor Fitzgerald reiterated an "overweight" rating and set a $175.00 price target on shares of FormFactor in a research note on Monday, April 27th. Finally, Northland Securities set a $118.00 price target on shares of FormFactor in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $132.45.

FormFactor Price Performance

The stock has a fifty day moving average of $133.12 and a two-hundred day moving average of $106.09. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 139.71 and a beta of 1.22. The company has a quick ratio of 3.69, a current ratio of 4.55 and a debt-to-equity ratio of 0.01.

FormFactor (NASDAQ:FORM - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $226.14 million during the quarter, compared to analysts' expectations of $225.54 million. FormFactor had a return on equity of 9.31% and a net margin of 8.14%.FormFactor's revenue was up 31.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.23 earnings per share. FormFactor has set its Q2 2026 guidance at 0.570-0.650 EPS. On average, equities research analysts anticipate that FormFactor, Inc. will post 2.03 earnings per share for the current year.

Insider Transactions at FormFactor

In other FormFactor news, Director Dennis Thomas St sold 2,800 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $151.49, for a total transaction of $424,172.00. Following the transaction, the director directly owned 29,073 shares in the company, valued at approximately $4,404,268.77. This represents a 8.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Mike Slessor sold 11,890 shares of the stock in a transaction dated Wednesday, June 10th. The shares were 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 directly owned 435,147 shares of the company's stock, valued at approximately $52,805,088.45. This trade represents a 2.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 49,828 shares of company stock valued at $6,306,587. 0.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On FormFactor

Several institutional investors have recently modified their holdings of the company. Los Angeles Capital Management LLC purchased a new position in FormFactor in the 4th quarter valued at approximately $25,000. UMB Bank n.a. boosted its position in shares of FormFactor by 128.9% in 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. Torren Management LLC acquired a new stake in FormFactor in the 4th quarter valued at about $41,000. Kestra Advisory Services LLC purchased a new position in FormFactor during the 4th quarter valued at about $53,000. Finally, Clearstead Advisors LLC raised its position in FormFactor by 58.9% during the fourth quarter. Clearstead Advisors LLC now owns 1,050 shares of the semiconductor company's stock worth $59,000 after acquiring an additional 389 shares during the last quarter. Hedge funds and other institutional investors own 98.76% of the company's stock.

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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