FormFactor (NASDAQ:FORM) Shares Down 12.5% – Should You Sell?

Shares of FormFactor, Inc. (NASDAQ:FORM) dropped 12.5% on Tuesday . The company traded as low as $134.77 and last traded at $132.5060. Approximately 721,795 shares traded hands during trading, a decline of 56% from the average daily volume of 1,635,129 shares. The stock had previously closed at $151.40.

More FormFactor News

Here are the key news stories impacting FormFactor this week:

• Positive Sentiment: Craig Hallum upgraded FormFactor (FORM) from hold to buy and set a $175 price target, implying meaningful upside from current levels. The call suggests Wall Street sees more room for the stock to run. Benzinga report
• Positive Sentiment: A CEO interview highlighted that key indicators point to continued semiconductor demand, which supports the outlook for FormFactor’s test and measurement business. MSN video/article
• Neutral Sentiment: Market chatter also pointed to unusually heavy call-option activity in FORM, showing rising trader interest and speculation ahead of potential catalysts. MSN article
• Neutral Sentiment: FormFactor was included in a roundup of top Wall Street analyst research calls, which adds attention to the stock but does not by itself indicate a change in fundamentals. 247WallSt article
• Negative Sentiment: Recent short-interest data showed no meaningful bearish positioning change, so there is no clear negative catalyst here; however, the lack of a new short squeeze setup may limit some speculative support. Short interest report

Analyst Ratings Changes

FORM has been the topic of several analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $175.00 target price on shares of FormFactor in a report on Monday, April 27th. B. Riley Financial reiterated a “neutral” rating on shares of FormFactor in a research report on Thursday, April 30th. Zacks Research cut shares of FormFactor from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Wall Street Zen upgraded FormFactor from a “hold” rating to a “buy” rating in a report on Saturday, February 28th. Finally, Piper Sandler set a $100.00 price objective on FormFactor in a research note on Monday, February 2nd. Four investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, FormFactor currently has a consensus rating of “Hold” and a consensus price target of $129.27.

FormFactor Stock Performance

The company has a quick ratio of 3.69, a current ratio of 4.55 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $9.86 billion, a P/E ratio of 146.88 and a beta of 1.32. The company’s 50 day moving average is $114.51 and its 200-day moving average is $82.83.

FormFactor (NASDAQ:FORM) last announced its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.11. The firm had revenue of $226.14 million for the quarter, compared to analyst estimates of $225.54 million. FormFactor had a net margin of 8.14% and a return on equity of 9.31%. The business’s quarterly revenue was up 31.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.23 earnings per share. FormFactor has set its Q2 2026 guidance at 0.570-0.650 EPS. As a group, equities analysts anticipate that FormFactor, Inc. will post 2.03 EPS for the current year.

Insider Transactions at FormFactor

In related news, CFO Aric Brendan Mckinnis sold 3,462 shares of FormFactor stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $90.42, for a total value of $313,034.04. Following the completion of the sale, the chief financial officer owned 11,140 shares of the company’s stock, valued at approximately $1,007,278.80. This trade represents a 23.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Mike Slessor sold 11,294 shares of FormFactor stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $127.72, for a total transaction of $1,442,469.68. Following the transaction, the chief executive officer owned 449,565 shares of the company’s stock, valued at $57,418,441.80. This represents a 2.45% 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. Over the last ninety days, insiders sold 38,947 shares of company stock worth $4,062,855. 0.79% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC bought a new stake in FormFactor during the fourth quarter worth $25,000. UMB Bank n.a. boosted its holdings in FormFactor by 128.9% during the 4th quarter. UMB Bank n.a. now owns 499 shares of the semiconductor company’s stock worth $28,000 after acquiring an additional 281 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of FormFactor by 84.4% in the 3rd quarter. Jones Financial Companies Lllp now owns 990 shares of the semiconductor company’s stock worth $35,000 after acquiring an additional 453 shares in the last quarter. Hantz Financial Services Inc. grew its stake in shares of FormFactor by 547.8% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,043 shares of the semiconductor company’s stock worth $38,000 after acquiring an additional 882 shares in the last quarter. Finally, Torren Management LLC purchased a new stake in shares of FormFactor in the fourth quarter valued at about $41,000. Institutional investors own 98.76% of the company’s stock.

About FormFactor

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.