FormFactor (NASDAQ:FORM) Trading Up 6.1% - Should You Buy?

Key Points

• FormFactor shares rose 6.1% to approximately $119.38, though trading volume was 96% below the daily average.
• The company reported stronger-than-expected quarterly results, with adjusted EPS of $0.82 versus estimates of $0.61 and revenue up 31.9% year over year to $258.24 million.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $127.45, while insiders sold $4.86 million of stock in the latest quarter.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report)'s stock price rose 6.1% during trading on Tuesday . The stock traded as high as $118.50 and last traded at $119.3780. Approximately 63,102 shares were traded during trading, a decline of 96% from the average daily volume of 1,696,029 shares. The stock had previously closed at $112.47.

Wall Street Analysts Forecast Growth

FORM has been the topic of several research analyst reports. Cantor Fitzgerald reiterated an "overweight" rating on shares of FormFactor in a research report on Monday, July 27th. Craig Hallum upgraded shares of FormFactor from a "hold" rating to a "buy" rating and set a $175.00 price target on the stock in a research report on Tuesday, May 12th. Wall Street Zen downgraded shares of FormFactor from a "strong-buy" rating to a "buy" rating in a report on Sunday. Zacks Research lowered FormFactor from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Northland Securities set a $118.00 target price on FormFactor in a report on Thursday, April 30th. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, FormFactor has a consensus rating of "Moderate Buy" and an average target price of $127.45.

FormFactor Price Performance

The stock has a market capitalization of $9.28 billion, a P/E ratio of 81.40 and a beta of 1.25. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.08 and a quick ratio of 3.34. The stock's fifty day moving average is $122.47 and its 200-day moving average is $113.33.

FormFactor (NASDAQ:FORM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $0.82 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.21. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The business had revenue of $258.24 million during the quarter, compared to analysts' expectations of $240.00 million. During the same period in the previous year, the company earned $0.27 earnings per share. FormFactor's revenue for the quarter was up 31.9% on a year-over-year basis. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. On average, equities analysts anticipate that FormFactor, Inc. will post 2.7 earnings per share for the current year.

Insider Buying and Selling at FormFactor

In related news, Director Brian C. White sold 3,250 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $126.00, for a total value of $409,500.00. Following the completion of the transaction, the director directly owned 8,653 shares in the company, valued at approximately $1,090,278. This represents a 27.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Mike Slessor sold 11,890 shares of the company's 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 sale, the chief executive officer directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 38,534 shares of company stock valued at $4,864,118 in the last quarter. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Los Angeles Capital Management LLC bought a new position in FormFactor in the fourth quarter valued at about $25,000. UMB Bank n.a. raised its holdings in FormFactor by 128.9% during the 4th quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 281 shares during the last quarter. Torren Management LLC bought a new stake in FormFactor during the 4th quarter worth about $41,000. Persistent Asset Partners Ltd acquired a new position in FormFactor during the 2nd quarter valued at about $43,000. Finally, USA Financial Formulas bought a new position in shares of FormFactor in the 1st quarter valued at about $46,000. 98.76% of the stock is currently owned by 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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