FormFactor (NASDAQ:FORM) Shares Gap Down - Time to Sell?

Key Points

• FormFactor shares gapped down sharply, opening at $104.24 versus the prior close of $114.95 and later trading near $107.54.
• Analyst views remain mixed: the consensus rating is “Moderate Buy” with a $127.45 price target, although TD Cowen cut its target to $100 and kept a Hold rating.
• The company reported strong quarterly results, with EPS of $0.82 versus $0.61 expected and revenue up 31.9% year over year to $258.24 million. Insiders recently sold shares, while institutional investors own 98.76% of the stock.

Shares of FormFactor, Inc. (NASDAQ:FORM - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $114.95, but opened at $104.24. FormFactor shares last traded at $107.5430, with a volume of 131,944 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on FORM shares. TD Cowen reduced their target price on FormFactor from $150.00 to $100.00 and set a "hold" rating for the company in a report on Thursday, July 30th. Weiss Ratings upgraded FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 6th. Evercore set a $150.00 price target on shares of FormFactor in a research report on Thursday, July 30th. Wall Street Zen cut shares of FormFactor from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 9th. Finally, Zacks Research upgraded shares of FormFactor from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $127.45.

FormFactor Price Performance

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 stock's 50-day moving average price is $111.05 and its 200 day moving average price is $118.02. The firm has a market cap of $8.28 billion, a price-to-earnings ratio of 72.78 and a beta of 1.24.

FormFactor (NASDAQ:FORM - Get Free Report) last released its earnings results 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 return on equity of 13.44% and a net margin of 12.80%.The business had revenue of $258.24 million for the quarter, compared to the consensus estimate of $240.00 million. During the same period last year, the business earned $0.27 earnings per share. The firm's revenue for the quarter was up 31.9% compared to the same quarter last year. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Equities research analysts predict that FormFactor, Inc. will post 2.7 earnings per share for the current year.

Insider Buying and Selling at FormFactor

In other FormFactor news, CEO Mike Slessor sold 16,002 shares of FormFactor stock in a transaction on Friday, August 14th. The shares were sold at an average price of $130.95, for a total transaction of $2,095,461.90. Following the sale, the chief executive officer owned 484,204 shares in the company, valued at $63,406,513.80. The trade was a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kelley Steven-Waiss sold 2,100 shares of FormFactor stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total transaction of $201,810.00. Following the sale, the director owned 24,426 shares in the company, valued at approximately $2,347,338.60. This trade represents a 7.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.79% of the stock is owned by company insiders.

Institutional Trading of FormFactor

Large investors have recently bought and sold shares of the stock. Mercer Global Advisors Inc. ADV raised its position in FormFactor by 2.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,509 shares of the semiconductor company's stock valued at $419,000 after purchasing an additional 157 shares in the last quarter. Keating Financial Advisory Services Inc. bought a new position in shares of FormFactor in the 2nd quarter valued at $25,000. Blue Trust Inc. increased its stake in shares of FormFactor by 1.9% in the 1st quarter. Blue Trust Inc. now owns 10,542 shares of the semiconductor company's stock valued at $1,022,000 after purchasing an additional 196 shares during the last quarter. Arizona State Retirement System raised its holdings in shares of FormFactor by 1.0% during the 2nd quarter. Arizona State Retirement System now owns 21,510 shares of the semiconductor company's stock worth $3,440,000 after buying an additional 218 shares in the last quarter. Finally, Persistent Asset Partners Ltd acquired a new position in shares of FormFactor during the 2nd quarter worth $43,000. 98.76% of the stock is currently owned by institutional investors.

About FormFactor

FormFactor, Inc is a semiconductor test and measurement company that develops and manufactures equipment and components used to evaluate integrated circuits during wafer fabrication and final testing. Its products help semiconductor manufacturers and research organizations measure electrical performance, identify defects and improve yields before chips are packaged and shipped.

The company's product portfolio includes advanced wafer probe cards, which establish electrical connections with semiconductor wafers during automated testing, as well as engineering probe systems, probe stations and related measurement technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.