FormFactor (NASDAQ:FORM) Shares Up 9.1% - Here's What Happened

Key Points

• FormFactor shares climbed 9.1% to $93.41, though midday trading volume was 92% below its average.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $1.04 versus $0.86 expected and revenue of $280.55 million versus $270.52 million; revenue rose 38.4% year over year.
• Analysts’ overall rating is “Moderate Buy”, with a consensus price target of $133.25. Recent insider sales included transactions by the CEO and a director.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report) shares rose 9.1% during trading on Wednesday. The company traded as high as $94.76 and last traded at $93.4110. 136,187 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 1,656,006 shares. The stock had previously closed at $85.63.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Weiss Ratings raised FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, October 16th. Evercore set a $150.00 price target on shares of FormFactor in a research report on Thursday, July 30th. TD Cowen upped their price target on shares of FormFactor from $100.00 to $110.00 and gave the company a "hold" rating in a report on Thursday, October 29th. B. Riley Financial reduced their price objective on shares of FormFactor from $150.00 to $125.00 and set a "buy" rating for the company in a research report on Monday. Finally, Jefferies Financial Group began coverage on shares of FormFactor in a research note on Wednesday. They issued a "buy" rating and a $102.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $133.25.

FormFactor Stock Up 14.2%

The company has a current ratio of 3.68, a quick ratio of 3.02 and a debt-to-equity ratio of 0.01. The stock has a market cap of $7.67 billion, a P/E ratio of 44.60 and a beta of 1.27. The firm's fifty day moving average is $113.09 and its 200 day moving average is $113.69.

FormFactor (NASDAQ:FORM - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The semiconductor company reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.86 by $0.18. The company had revenue of $280.55 million for the quarter, compared to the consensus estimate of $270.52 million. FormFactor had a net margin of 17.72% and a return on equity of 18.40%. The business's revenue was up 38.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.33 EPS. As a group, equities research analysts forecast that FormFactor, Inc. will post 2.96 EPS for the current year.

Insider Buying and Selling

In related news, CEO Mike Slessor sold 11,098 shares of the firm's stock in a transaction that occurred on Wednesday, October 14th. The stock was sold at an average price of $125.20, for a total transaction of $1,389,469.60. Following the completion of the transaction, the chief executive officer owned 455,596 shares in the company, valued at $57,040,619.20. This trade represents a 2.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kelley Steven-Waiss sold 2,100 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total value of $201,810.00. Following the completion of the sale, the director directly owned 24,426 shares in the company, valued at approximately $2,347,338.60. This represents a 7.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 46,710 shares of company stock worth $5,520,564. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On FormFactor

Large investors have recently made changes to their positions in the company. Bank of America Corp DE bought a new stake in shares of FormFactor during the second quarter worth $285,257,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of FormFactor in the 2nd quarter valued at about $2,047,000. Reinhart Partners LLC. grew its position in FormFactor by 3.1% in the third quarter. Reinhart Partners LLC. now owns 659,667 shares of the semiconductor company's stock valued at $98,495,000 after purchasing an additional 19,745 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new position in shares of FormFactor during the 2nd quarter worth approximately $3,940,000. Finally, The Manufacturers Life Insurance Company bought a new position in shares of FormFactor in the second quarter valued at $4,108,000. Institutional investors own 98.76% of the company's stock.

FormFactor Company Profile

FormFactor, Inc. designs and manufactures testing and measurement products used in the development and production of semiconductor devices. Its offerings include probe cards, which connect test equipment to semiconductor wafers, as well as probe stations and related systems for electrical and thermal characterization. The company's products support testing at multiple stages of semiconductor development and manufacturing, including work on advanced integrated circuits and other complex devices. FormFactor serves customers around the world, including semiconductor manufacturers and research organizations.

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