FormFactor (NASDAQ:FORM) Trading Down 6.2% - Should You Sell?

Key Points

• FormFactor shares fell 6.2% to roughly $116.61 in mid-day trading, with volume down 79% from the average session.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $127.45, although TD Cowen cut its target to $100 and assigned a “Hold” rating.
• The company recently beat quarterly earnings and revenue estimates, reporting $0.82 EPS and $258.24 million in revenue, up 31.9% year over year; however, insiders sold about $5.24 million of stock over the past 90 days.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) shares traded down 6.2% during mid-day trading on Wednesday . The stock traded as low as $114.57 and last traded at $116.6080. Approximately 351,327 shares were traded during mid-day trading, a decline of 79% from the average session volume of 1,676,025 shares. The stock had previously closed at $124.34.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Stifel Nicolaus set a $135.00 target price on shares of FormFactor in a research note on Thursday, April 30th. Cantor Fitzgerald reissued an "overweight" rating on shares of FormFactor in a research report on Monday, July 27th. TD Cowen dropped their target price on shares of FormFactor from $150.00 to $100.00 and set a "hold" rating on the stock in a report on Thursday, July 30th. Evercore set a $150.00 price objective on shares of FormFactor in a research report on Thursday, July 30th. Finally, Zacks Research lowered FormFactor from a "strong-buy" rating to a "hold" rating in a report on Monday, July 20th. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, FormFactor presently has a consensus rating of "Moderate Buy" and an average price target of $127.45.

FormFactor Stock Performance

The company has a market cap of $8.92 billion, a P/E ratio of 79.27 and a beta of 1.25. The company has a quick ratio of 3.34, a current ratio of 4.08 and a debt-to-equity ratio of 0.01. The company has a 50 day moving average price of $123.20 and a 200-day moving average price of $115.56.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $0.82 earnings per share 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 company's quarterly revenue was up 31.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.27 earnings per share. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Equities analysts expect that FormFactor, Inc. will post 2.7 EPS for the current fiscal year.

Insider Transactions at FormFactor

In related news, Director Sheri Rhodes sold 6,328 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $125.40, for a total transaction of $793,531.20. Following the completion of the transaction, the director owned 5,375 shares of the company's stock, valued at $674,025. This trade represents a 54.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Rebeca Obregon-Jimenez sold 3,828 shares of the business's stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $126.47, for a total transaction of $484,127.16. Following the completion of the sale, the director owned 7,875 shares in the company, valued at approximately $995,951.25. This trade represents a 32.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 40,848 shares of company stock valued at $5,240,144. Company insiders own 0.79% of the company's stock.

Institutional Trading of FormFactor

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of FormFactor during the 2nd quarter valued at $1,676,772,000. Andar Capital Management HK Ltd acquired a new stake in shares of FormFactor during the second quarter worth $27,000,000. Bank of America Corp DE raised its position in shares of FormFactor by 4.0% during the second quarter. Bank of America Corp DE now owns 2,806,905 shares of the semiconductor company's stock worth $96,586,000 after purchasing an additional 108,487 shares during the period. Alliancebernstein L.P. lifted its holdings in shares of FormFactor by 3.2% during the third quarter. Alliancebernstein L.P. now owns 2,397,161 shares of the semiconductor company's stock valued at $87,305,000 after purchasing an additional 73,644 shares during the last quarter. Finally, Morgan Stanley lifted its holdings in shares of FormFactor by 98.5% during the fourth quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company's stock valued at $126,708,000 after purchasing an additional 1,127,146 shares during the last quarter. 98.76% of the stock is owned by institutional investors and hedge funds.

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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