FormFactor Sees Unusually Large Options Volume (NASDAQ:FORM)

Key Points

• FormFactor saw unusually heavy options activity on Monday, with 8,239 call options purchased — about 602% above its typical daily volume.
• The stock fell 2.0% to $144.99, while trading volume of 1.72 million shares was roughly in line with its average. Shares remain well above their 50-day and 200-day moving averages.
• FormFactor recently beat earnings expectations, reporting $0.56 EPS versus $0.45 expected and 31.9% year-over-year revenue growth, though analysts currently rate the stock a Hold on average.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) was the target of unusually large options trading on Monday. Stock investors purchased 8,239 call options on the company. This is an increase of approximately 602% compared to the typical daily volume of 1,174 call options.

FormFactor Trading Down 2.0%

NASDAQ:FORM traded down $2.89 during trading hours on Monday, hitting $144.99. 1,717,380 shares of the company were exchanged, compared to its average volume of 1,624,456. The company has a fifty day simple moving average of $112.60 and a 200 day simple moving average of $81.34. FormFactor has a one year low of $26.08 and a one year high of $159.09. The company has a current ratio of 4.55, a quick ratio of 3.69 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $11.30 billion, a price-to-earnings ratio of 169.07 and a beta of 1.32.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $0.56 earnings per share for the quarter, topping 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 during the quarter, compared to analyst estimates of $225.54 million. During the same period last year, the company posted $0.23 EPS. The business's quarterly revenue was up 31.9% on a year-over-year basis. FormFactor has set its Q2 2026 guidance at 0.570-0.650 EPS. Sell-side analysts expect that FormFactor will post 2.03 EPS for the current fiscal year.

Insider Buying and Selling at FormFactor

In related news, CEO Mike Slessor sold 11,294 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $127.72, for a total transaction of $1,442,469.68. Following the sale, the chief executive officer owned 449,565 shares of the company's stock, valued at $57,418,441.80. This represents a 2.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Aric Brendan Mckinnis sold 3,462 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $90.42, for a total value of $313,034.04. Following the sale, the chief financial officer directly owned 11,140 shares in the company, valued at $1,007,278.80. This represents a 23.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 56,212 shares of company stock valued at $5,673,305 over the last ninety days. 0.79% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. SG Americas Securities LLC bought a new position in shares of FormFactor in the 3rd quarter worth about $508,000. State of New Jersey Common Pension Fund D grew its stake in shares of FormFactor by 24.8% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 76,376 shares of the semiconductor company's stock valued at $2,782,000 after buying an additional 15,186 shares during the period. Reinhart Partners LLC. grew its stake in shares of FormFactor by 26.3% in the 3rd quarter. Reinhart Partners LLC. now owns 2,404,854 shares of the semiconductor company's stock valued at $87,585,000 after buying an additional 500,156 shares during the period. ProShare Advisors LLC grew its stake in shares of FormFactor by 68.8% in the 3rd quarter. ProShare Advisors LLC now owns 29,336 shares of the semiconductor company's stock valued at $1,068,000 after buying an additional 11,956 shares during the period. Finally, Shannon River Fund Management LLC acquired a new stake in shares of FormFactor in the 3rd quarter valued at about $35,260,000. 98.76% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

FORM has been the subject of a number of research reports. Piper Sandler set a $100.00 price target on FormFactor in a research note on Monday, February 2nd. Cantor Fitzgerald reiterated an "overweight" rating and issued a $175.00 price target on shares of FormFactor in a research note on Monday, April 27th. TD Cowen raised their target price on FormFactor from $80.00 to $150.00 and gave the stock a "hold" rating in a research report on Thursday, April 30th. Stifel Nicolaus set a $135.00 target price on FormFactor in a research report on Thursday, April 30th. Finally, Zacks Research lowered FormFactor from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Three research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $121.55.

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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