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

FormFactor, Inc. (NASDAQ:FORM)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $156.66, but opened at $138.50. FormFactor shares last traded at $142.0450, with a volume of 252,861 shares trading hands.

Analysts Set New Price Targets

Several analysts recently weighed in on FORM shares. Zacks Research upgraded FormFactor from a “hold” rating to a “strong-buy” rating in a report on Tuesday, May 26th. Craig Hallum raised shares of FormFactor from a “hold” rating to a “buy” rating and set a $175.00 target price on the stock in a research report on Tuesday, May 12th. Northland Securities set a $118.00 price target on shares of FormFactor in a report on Thursday, April 30th. Citigroup upped their price target on shares of FormFactor to $165.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $175.00 price objective on shares of FormFactor in a research note on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $132.45.

FormFactor Trading Down 9.7%

The company has a current ratio of 4.55, a quick ratio of 3.69 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $11.02 billion, a P/E ratio of 162.66 and a beta of 1.26. The company has a 50-day moving average price of $134.24 and a 200 day moving average price of $99.64.

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

Insiders Place Their Bets

In related news, Director Rebeca Obregon-Jimenez sold 3,828 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $126.47, for a total transaction of $484,127.16. Following the completion of the transaction, the director owned 7,875 shares in the company, valued at $995,951.25. The trade was a 32.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Dennis Thomas St sold 2,800 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were 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 of the company’s stock, valued at $4,404,268.77. The trade was a 8.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 49,828 shares of company stock worth $6,306,587. Insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On FormFactor

A number of large investors have recently made changes to their positions in FORM. Victory Capital Management Inc. lifted its holdings in shares of FormFactor by 5,596.8% during the 4th quarter. Victory Capital Management Inc. now owns 1,256,545 shares of the semiconductor company’s stock valued at $70,090,000 after purchasing an additional 1,234,488 shares during the last quarter. Morgan Stanley grew its stake in FormFactor by 98.5% during the 4th quarter. Morgan Stanley now owns 2,271,562 shares of the semiconductor company’s stock worth $126,708,000 after buying an additional 1,127,146 shares during the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in FormFactor during the 4th quarter worth $60,495,000. Westfield Capital Management Co. LP acquired a new position in FormFactor during the 3rd quarter valued at about $37,391,000. Finally, Shannon River Fund Management LLC purchased a new stake in FormFactor in the third quarter valued at about $35,260,000. 98.76% of the stock is owned by institutional investors and hedge funds.

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.