FormFactor (NASDAQ:FORM) Shares Gap Down – Should You Sell?

FormFactor, Inc. (NASDAQ:FORM) shares gapped down prior to trading on Thursday. The stock had previously closed at $112.18, but opened at $103.48. FormFactor shares last traded at $101.6790, with a volume of 152,610 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on FORM shares. Wall Street Zen cut shares of FormFactor from a “strong-buy” rating to a “buy” rating in a research report on Sunday, August 9th. Deutsche Bank Aktiengesellschaft assumed coverage on FormFactor in a report on Wednesday, September 30th. They issued a “buy” rating and a $200.00 target price on the stock. Stifel Nicolaus set a $115.00 price target on FormFactor in a research note on Tuesday, October 13th. Cantor Fitzgerald restated an “overweight” rating on shares of FormFactor in a research note on Tuesday, September 22nd. Finally, Weiss Ratings raised FormFactor from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday, October 16th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, FormFactor presently has a consensus rating of “Moderate Buy” and an average target price of $131.83.

FormFactor Price Performance

The company has a market capitalization of $7.59 billion, a PE ratio of 66.50 and a beta of 1.18. 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’s 50 day simple moving average is $119.51 and its 200 day simple moving average is $123.94.

FormFactor (NASDAQ:FORM) last released its quarterly earnings data 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. The company had revenue of $258.24 million for the quarter, compared to analysts’ expectations of $240.00 million. FormFactor had a net margin of 12.80% and a return on equity of 13.44%. The firm’s revenue for the quarter was up 31.9% on a year-over-year basis. During the same quarter last year, the company earned $0.27 earnings per share. FormFactor has set its Q3 2026 guidance at 0.770-0.950 EPS. As a group, sell-side analysts predict that FormFactor, Inc. will post 2.70 earnings per share for the current year.

Insider Buying and Selling at FormFactor

In related news, CEO Mike Slessor sold 11,098 shares of FormFactor stock in a transaction on Wednesday, October 14th. The shares were sold at an average price of $125.20, for a total transaction of $1,389,469.60. Following the sale, the chief executive officer directly owned 455,596 shares in the company, valued at $57,040,619.20. This trade represents a 2.38% decrease in their position. The sale was disclosed in a legal 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 transaction of $201,810.00. Following the completion of the sale, the director directly owned 24,426 shares of the company’s stock, valued at approximately $2,347,338.60. This trade represents a 7.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,710 shares of company stock worth $5,520,564 over the last quarter. 0.79% of the stock is owned by company insiders.

Institutional Trading of FormFactor

A number of hedge funds and other institutional investors have recently made changes to their positions in FORM. BlackRock Inc. acquired a new stake in shares of FormFactor in the 2nd quarter valued at about $1,676,772,000. Andar Capital Management HK Ltd acquired a new position in FormFactor during the second quarter worth approximately $27,000,000. Bank of America Corp DE acquired a new position in FormFactor during the second quarter worth approximately $285,257,000. Primecap Management Co. CA purchased a new stake in FormFactor in the second quarter valued at approximately $270,300,000. Finally, Reinhart Partners LLC. lifted its stake 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 buying an additional 19,745 shares during the last quarter. 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.