FormFactor (NASDAQ:FORM) Stock Falls 6.3% - Here's Why

Key Points

• FormFactor shares fell 6.3% to about $122.09, with trading volume roughly 75% below the average session level.
• Analyst sentiment remains positive but mixed: the stock has a consensus “Moderate Buy” rating and a $131.83 price target, while TD Cowen downgraded it to “Hold” and cut its target to $100.
• The company recently exceeded quarterly earnings and revenue estimates, but insiders sold $4.1 million in shares over the last quarter; institutional investors own 98.76% of the stock.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report)'s stock price traded down 6.3% during mid-day trading on Tuesday. The stock traded as low as $123.83 and last traded at $122.0870. 416,304 shares traded hands during trading, a decline of 75% from the average session volume of 1,652,116 shares. The stock had previously closed at $130.28.

Analyst Ratings Changes

FORM has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft assumed coverage on shares of FormFactor in a research note on Wednesday, September 30th. They issued a "buy" rating and a $200.00 price objective for the company. Evercore set a $150.00 price target on shares of FormFactor in a research note on Thursday, July 30th. Wall Street Zen lowered shares of FormFactor from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 9th. TD Cowen reduced their price target on FormFactor from $150.00 to $100.00 and set a "hold" rating on the stock in a report on Thursday, July 30th. Finally, Zacks Research upgraded 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, seven have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $131.83.

FormFactor Stock Down 4.8%

The company has a current ratio of 4.08, a quick ratio of 3.34 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $9.67 billion, a price-to-earnings ratio of 85.22 and a beta of 1.18. The company has a 50-day moving average of $120.18 and a 200-day moving average of $123.26.

FormFactor (NASDAQ:FORM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $0.82 earnings per share for the quarter, beating 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 firm had revenue of $258.24 million for the quarter, compared to analyst estimates of $240.00 million. During the same period in the previous year, the company earned $0.27 earnings per share. The business's quarterly revenue was up 31.9% compared to the same quarter last year. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. On average, equities analysts predict that FormFactor, Inc. will post 2.70 earnings per share for the current fiscal year.

Insider Activity at FormFactor

In other news, Director Kelley Steven-Waiss sold 2,100 shares of the stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $96.10, for a total value of $201,810.00. Following the transaction, the director owned 24,426 shares in the company, valued at approximately $2,347,338.60. This represents a 7.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Mike Slessor sold 17,510 shares of the company's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $104.73, for a total value of $1,833,822.30. Following the sale, the chief executive officer directly owned 466,694 shares of the company's stock, valued at approximately $48,876,862.62. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 35,612 shares of company stock valued at $4,131,094 over the last quarter. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in FormFactor in the 2nd quarter valued at $1,676,772,000. Andar Capital Management HK Ltd bought a new stake in FormFactor in the second quarter valued at $27,000,000. Bank of America Corp DE bought a new position in shares of FormFactor during the second quarter valued at $285,257,000. Primecap Management Co. CA acquired a new stake in shares of FormFactor in the 2nd quarter valued at $270,300,000. Finally, Bank of New York Mellon Corp bought a new position in FormFactor during the 2nd quarter valued at about $103,844,000. Institutional investors and hedge funds own 98.76% of the company's stock.

FormFactor Company Profile

FormFactor, Inc develops and manufactures semiconductor test and measurement products used throughout the integrated-circuit manufacturing process. Its technologies help chip manufacturers and semiconductor companies evaluate the electrical performance, reliability and quality of wafers and individual devices before and during production.

The company's offerings include advanced wafer probe cards, probe card assemblies, semiconductor test systems, engineering probe stations and related accessories and services.

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