FormFactor (NASDAQ:FORM) Shares Up 6.4% - Should You Buy?

Key Points

• FormFactor shares rose 6.4% to about $111.71, though trading volume was 92% below the stock’s average daily volume.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $131.83 target price. The company also exceeded quarterly expectations, reporting $0.82 EPS versus the $0.61 estimate and 31.9% year-over-year revenue growth.
• Insiders have recently sold shares, including the CEO’s $1.39 million sale, while institutional investors own a substantial 98.76% of the company. The stock trades at a relatively high P/E ratio of 77.84 and remains below its 50-day and 200-day moving averages.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) shot up 6.4% during trading on Monday. The stock traded as high as $113.00 and last traded at $111.7060. 127,670 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 1,647,792 shares. The stock had previously closed at $105.01.

Wall Street Analysts Forecast Growth

FORM has been the topic of several research reports. Zacks Research upgraded shares of FormFactor from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 18th. Wall Street Zen cut FormFactor from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 9th. Weiss Ratings upgraded FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday. Cantor Fitzgerald reiterated an "overweight" rating on shares of FormFactor in a report on Tuesday, September 22nd. Finally, Stifel Nicolaus set a $115.00 target price on shares of FormFactor in a report on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, FormFactor currently has a consensus rating of "Moderate Buy" and a consensus target price of $131.83.

FormFactor Stock Performance

The firm's 50 day simple moving average is $120.16 and its 200-day simple moving average is $123.74. The company has a market capitalization of $8.86 billion, a price-to-earnings ratio of 77.84 and a beta of 1.18. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.34 and a current ratio of 4.08.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The semiconductor company reported $0.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.21. The business had revenue of $258.24 million during the quarter, compared to analyst estimates of $240.00 million. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The firm's revenue was up 31.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.27 earnings per share. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. Analysts expect that FormFactor, Inc. will post 2.70 EPS for the current year.

Insiders Place Their Bets

In other news, Director Kelley Steven-Waiss sold 2,100 shares of FormFactor stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $96.10, for a total transaction of $201,810.00. Following the completion of the sale, the director directly owned 24,426 shares in the company, valued at $2,347,338.60. The trade was a 7.92% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Mike Slessor sold 11,098 shares of the business's stock in a transaction that occurred on Wednesday, October 14th. The shares were sold at an average price of $125.20, for a total value of $1,389,469.60. Following the completion of the sale, the chief executive officer directly owned 455,596 shares of the company's stock, valued at approximately $57,040,619.20. The trade was a 2.38% 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 have sold a total of 46,710 shares of company stock valued at $5,520,564 in the last three months. Company insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On FormFactor

Several institutional investors and hedge funds have recently modified their holdings of FORM. Keating Financial Advisory Services Inc. acquired a new position in FormFactor in the 2nd quarter valued at $25,000. V Square Quantitative Management LLC grew its position in shares of FormFactor by 96.1% in the third quarter. V Square Quantitative Management LLC now owns 253 shares of the semiconductor company's stock valued at $38,000 after purchasing an additional 124 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in shares of FormFactor in the second quarter worth about $43,000. Mather Group LLC. acquired a new position in shares of FormFactor during the 3rd quarter worth about $44,000. Finally, Allworth Financial LP bought a new stake in FormFactor during the 2nd quarter valued at approximately $72,000. Institutional investors and hedge funds own 98.76% of the company's stock.

FormFactor Company Profile

FormFactor, Inc is a semiconductor test and measurement company that designs and manufactures equipment and components used to evaluate integrated circuits during the wafer fabrication and production process. Its products help semiconductor manufacturers and suppliers measure electrical performance, identify defects and improve the development and manufacturing of advanced chips.

The company's portfolio includes probe cards used for wafer-level testing, as well as probe stations, analytical systems and related accessories for semiconductor engineering and production applications.

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