FormFactor (NASDAQ:FORM) Trading Up 4.9% - Should You Buy?

Key Points

• FormFactor shares rose 4.9% to $115.28, although trading volume was 74% below the average session volume.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and a $127.45 average price target; recent ratings ranged from “Hold” to “Strong Buy.”
• The company exceeded quarterly expectations, reporting $0.82 in EPS versus $0.61 expected and $258.24 million in revenue, up 31.9% year over year. However, insiders sold 20,902 shares worth $2.72 million in the last quarter.

FormFactor, Inc. (NASDAQ:FORM - Get Free Report)'s stock price rose 4.9% on Wednesday . The stock traded as high as $115.23 and last traded at $115.28. Approximately 422,476 shares changed hands during trading, a decline of 74% from the average session volume of 1,626,219 shares. The stock had previously closed at $109.86.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. B. Riley Financial upgraded shares of FormFactor from a "neutral" rating to a "buy" rating and set a $165.00 price objective for the company in a research note on Thursday, June 11th. TD Cowen dropped their price target on shares of FormFactor from $150.00 to $100.00 and set a "hold" rating on the stock in a research report on Thursday, July 30th. Zacks Research raised shares of FormFactor from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 18th. Wall Street Zen cut shares of FormFactor from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 9th. Finally, Weiss Ratings raised FormFactor from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $127.45.

FormFactor Stock Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 4.08 and a quick ratio of 3.34. The company has a 50 day simple moving average of $112.11 and a 200-day simple moving average of $117.61. The stock has a market capitalization of $8.91 billion, a P/E ratio of 78.19 and a beta of 1.24.

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 for the quarter, topping the consensus estimate of $0.61 by $0.21. The company had revenue of $258.24 million during the quarter, compared to the consensus estimate of $240.00 million. FormFactor had a return on equity of 13.44% and a net margin of 12.80%.The firm's quarterly revenue was up 31.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.27 EPS. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. On average, equities analysts forecast that FormFactor, Inc. will post 2.7 EPS for the current year.

Insider Buying and Selling at FormFactor

In other news, Director Thomas St. Dennis sold 2,800 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $151.49, for a total transaction of $424,172.00. Following the sale, the director directly owned 29,073 shares in the company, valued at $4,404,268.77. This represents a 8.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Mike Slessor sold 16,002 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $130.95, for a total transaction of $2,095,461.90. Following the completion of the sale, the chief executive officer directly owned 484,204 shares in the company, valued at approximately $63,406,513.80. The trade was a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 20,902 shares of company stock valued at $2,721,444 in the last quarter. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in FORM. Keating Financial Advisory Services Inc. bought a new stake in FormFactor during the second quarter valued at $25,000. Los Angeles Capital Management LLC purchased a new position in shares of FormFactor during the fourth quarter worth about $25,000. UMB Bank n.a. increased its position in shares of FormFactor by 128.9% in the fourth quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company's stock worth $28,000 after purchasing an additional 281 shares during the last quarter. Persistent Asset Partners Ltd purchased a new stake in FormFactor in the second quarter valued at approximately $43,000. Finally, USA Financial Formulas bought a new stake in FormFactor during the first quarter valued at approximately $46,000. 98.76% of the stock is currently owned by hedge funds and other institutional investors.

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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