FormFactor (NASDAQ:FORM) Stock Price Down 12.5% - Should You Sell?

Key Points

• FormFactor shares fell 12.5% in Tuesday trading, with volume below normal as the stock dropped from $151.40 to around $132.51.
• Despite the pullback, Craig Hallum upgraded FormFactor to Buy and set a $175 price target, while other analysts’ views remain mixed with the stock carrying an overall Hold rating.
• The company’s latest earnings were solid, with Q1 EPS of $0.56 beating estimates and revenue up 31.9% year over year, and management guided Q2 EPS to $0.57–$0.65.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) shares traded down 12.5% during mid-day trading on Tuesday . The company traded as low as $134.77 and last traded at $132.5060. 721,795 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 1,635,129 shares. The stock had previously closed at $151.40.

Key Stories Impacting FormFactor

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: Craig Hallum upgraded FormFactor (FORM) from hold to buy and set a $175 price target, implying meaningful upside from current levels. The call suggests Wall Street sees more room for the stock to run. Benzinga report
• Positive Sentiment: A CEO interview highlighted that key indicators point to continued semiconductor demand, which supports the outlook for FormFactor’s test and measurement business. MSN video/article
• Neutral Sentiment: Market chatter also pointed to unusually heavy call-option activity in FORM, showing rising trader interest and speculation ahead of potential catalysts. MSN article
• Neutral Sentiment: FormFactor was included in a roundup of top Wall Street analyst research calls, which adds attention to the stock but does not by itself indicate a change in fundamentals. 247WallSt article
• Negative Sentiment: Recent short-interest data showed no meaningful bearish positioning change, so there is no clear negative catalyst here; however, the lack of a new short squeeze setup may limit some speculative support. Short interest report

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Stifel Nicolaus set a $135.00 price target on FormFactor in a report on Thursday, April 30th. B. Riley Financial reissued a "neutral" rating on shares of FormFactor in a research report on Thursday, April 30th. Cantor Fitzgerald restated an "overweight" rating and set a $175.00 target price on shares of FormFactor in a research note on Monday, April 27th. Evercore set a $155.00 price target on shares of FormFactor in a research note on Thursday, April 30th. Finally, Loop Capital set a $64.00 price target on shares of FormFactor in a report on Tuesday, January 27th. Four equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $129.27.

FormFactor Trading Down 16.5%

The firm has a 50 day moving average of $114.51 and a 200-day moving average of $82.83. The company has a quick ratio of 3.69, a current ratio of 4.55 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $9.86 billion, a P/E ratio of 146.88 and a beta of 1.32.

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

Insider Activity

In other FormFactor news, CFO Aric Brendan Mckinnis sold 3,462 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $90.42, for a total value of $313,034.04. Following the transaction, the chief financial officer directly owned 11,140 shares of the company's stock, valued at $1,007,278.80. This trade represents a 23.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Kevin J. Brewer sold 3,000 shares of the company's stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $96.20, for a total transaction of $288,600.00. Following the sale, the director directly owned 8,105 shares of the company's stock, valued at approximately $779,701. This trade represents a 27.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 38,947 shares of company stock valued at $4,062,855. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of FormFactor

Several institutional investors and hedge funds have recently modified their holdings of FORM. Los Angeles Capital Management LLC acquired a new position in FormFactor during the fourth quarter worth about $25,000. UMB Bank n.a. grew 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 valued at $28,000 after purchasing an additional 281 shares during the last quarter. Jones Financial Companies Lllp increased its position in FormFactor by 84.4% during the 3rd quarter. Jones Financial Companies Lllp now owns 990 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 453 shares in the last quarter. Hantz Financial Services Inc. boosted its position in FormFactor by 547.8% in the third quarter. Hantz Financial Services Inc. now owns 1,043 shares of the semiconductor company's stock valued at $38,000 after buying an additional 882 shares in the last quarter. Finally, Torren Management LLC bought a new stake in shares of FormFactor during the fourth quarter worth $41,000. 98.76% of the stock is currently 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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