FormFactor (NASDAQ:FORM) Raised to “Strong-Buy” at Wall Street Zen

by · The Markets Daily

FormFactor (NASDAQ:FORM – Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report released on Saturday, Wall Street Zen reports.

Other equities research analysts have also recently issued research reports about the company. TD Cowen boosted their target price on FormFactor from $100.00 to $110.00 and gave the stock a “hold” rating in a research note on Thursday. Zacks Research lowered shares of FormFactor from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 19th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of FormFactor in a research note on Tuesday, September 22nd. Stifel Nicolaus set a $115.00 price target on FormFactor in a report on Tuesday, October 13th. Finally, B. Riley Financial reiterated a “buy” rating on shares of FormFactor in a report on Monday, October 19th. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $139.73.

Check Out Our Latest Analysis on FORM

FormFactor Price Performance

Shares of NASDAQ:FORM opened at $87.53 on Friday. FormFactor has a 12-month low of $47.33 and a 12-month high of $160.27. The firm has a market cap of $6.82 billion, a P/E ratio of 39.97 and a beta of 1.27. The business has a fifty day simple moving average of $116.24 and a 200 day simple moving average of $113.43. The company has a quick ratio of 3.02, a current ratio of 3.68 and a debt-to-equity ratio of 0.01.

FormFactor (NASDAQ:FORM – Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.04 EPS for the quarter, topping the consensus estimate of $0.86 by $0.18. FormFactor had a net margin of 17.72% and a return on equity of 18.40%. The firm had revenue of $280.55 million for the quarter, compared to the consensus estimate of $270.52 million. During the same period last year, the firm posted $0.33 earnings per share. The business’s revenue was up 38.4% compared to the same quarter last year. Analysts predict that FormFactor will post 2.95 earnings per share for the current year.

Insider Activity at FormFactor

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

Institutional Investors Weigh In On FormFactor

A number of institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in FormFactor during the 2nd quarter worth approximately $1,676,772,000. Bank of America Corp DE bought a new position in shares of FormFactor in the second quarter worth $285,257,000. Primecap Management Co. CA purchased a new position in shares of FormFactor during the 2nd quarter valued at about $270,300,000. Bank of New York Mellon Corp bought a new position in shares of FormFactor during the second quarter valued at about $103,844,000. Finally, Reinhart Partners LLC. raised its holdings in FormFactor by 3.1% in the third quarter. Reinhart Partners LLC. now owns 659,667 shares of the semiconductor company’s stock worth $98,495,000 after purchasing an additional 19,745 shares in the last quarter. Institutional investors own 98.76% of the company’s stock.

Key FormFactor News

Here are the key news stories impacting FormFactor this week:

  • Positive Sentiment: FormFactor reported third-quarter revenue of $280.5 million, up 38.4% year over year, while non-GAAP earnings reached $1.04 per share versus the $0.86 consensus estimate. Revenue, gross margin and earnings exceeded the high end of management’s outlook. FormFactor’s Q3 Earnings Beat Estimates, Revenues Increase Y/Y
  • Positive Sentiment: Demand for probe cards, DRAM, photonics and foundry and logic applications is benefiting from AI-driven chip complexity. Growth in HBM4 testing and co-packaged optics could support longer-term expansion. FORM’s HBM and Foundry Testing Gain From AI Demand
  • Positive Sentiment: Analysts at Zacks characterized FORM as more attractive than Cohu because of its stronger profitability, cash generation and established AI-related revenue, while Zacks also added the stock to its Rank #1 Strong Buy list. FORM vs. COHU: Which Semiconductor Testing Stock is a Better Buy?
  • Neutral Sentiment: Fourth-quarter guidance calls for revenue of $275 million to $295 million and EPS of $0.86 to $1.04, both above consensus at the midpoint for EPS but implying only modest sequential revenue growth.
  • Negative Sentiment: Investors are concerned that FormFactor’s existing manufacturing footprint is approaching capacity limits. Productivity gains may moderate until the Farmers Branch, Texas, facility ramps, while start-up inefficiencies are expected to pressure near-term profitability and gross margins. FormFactor Sinks Despite Record Quarter as Factory Nears Capacity Limits
  • Negative Sentiment: Recent trading data showed substantial insider selling, with no reported insider purchases over the past six months, adding a cautious signal for investors.

About FormFactor

(Get Free Report)

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.

Further Reading