FormFactor (NASDAQ:FORM) Trading Down 7.3% - Should You Sell?

Key Points

• FormFactor shares fell 7.3% in Friday trading, briefly hitting $134 before last trading around $137.83, on volume well below average.
• Despite the pullback, analysts remain generally constructive: the stock carries a Moderate Buy consensus, with several recent rating upgrades and a consensus target price of $132.45.
• The company recently beat earnings estimates, reporting $0.56 EPS versus $0.45 expected and revenue growth of 31.9% year over year, while insider selling and a very high P/E ratio may be weighing on sentiment.

Shares of FormFactor, Inc. (NASDAQ:FORM - Get Free Report) traded down 7.3% during trading on Friday . The stock traded as low as $134.00 and last traded at $137.8270. 191,954 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 1,655,423 shares. The stock had previously closed at $148.75.

Wall Street Analyst Weigh In

FORM has been the topic of a number of research reports. Citigroup upped their price target on FormFactor to $165.00 and gave the stock a "buy" rating in a research note on Thursday, April 30th. Evercore raised FormFactor from an "in-line" rating to an "outperform" rating and set a $155.00 target price for the company in a research report on Friday, June 5th. Craig Hallum upgraded shares of FormFactor from a "hold" rating to a "buy" rating and set a $175.00 price objective for the company in a report on Tuesday, May 12th. Wall Street Zen upgraded shares of FormFactor from a "hold" rating to a "buy" rating in a report on Saturday, February 28th. Finally, Weiss Ratings upgraded shares of FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, FormFactor has a consensus rating of "Moderate Buy" and a consensus target price of $132.45.

FormFactor Stock Down 10.5%

The company has a market cap of $10.38 billion, a price-to-earnings ratio of 153.11 and a beta of 1.26. The firm's fifty day simple moving average is $135.30 and its 200 day simple moving average is $101.48. The company has a current ratio of 4.55, a quick ratio of 3.69 and a debt-to-equity ratio of 0.01.

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

Insider Activity at FormFactor

In other news, CEO Mike Slessor sold 11,890 shares of the business's stock in a transaction that occurred on 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 sale, the chief executive officer owned 435,147 shares in the company, valued at approximately $52,805,088.45. The trade was a 2.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dennis Thomas St sold 2,800 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $151.49, for a total transaction of $424,172.00. Following the completion of the transaction, the director owned 29,073 shares of the company's stock, valued at approximately $4,404,268.77. The trade was a 8.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 49,828 shares of company stock valued at $6,306,587 in the last quarter. Company insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On FormFactor

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

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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