FormFactor (NASDAQ:FORM) Stock Price Up 9.7% – Should You Buy?

FormFactor, Inc. (NASDAQ:FORM)’s share price was up 9.7% during trading on Tuesday. The stock traded as high as $96.28 and last traded at $95.8010. Approximately 155,800 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 1,650,293 shares. The stock had previously closed at $87.30.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on FORM shares. Zacks Research lowered FormFactor from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 19th. Cantor Fitzgerald restated an “overweight” rating on shares of FormFactor in a research report on Tuesday, September 22nd. TD Cowen lifted their price target on FormFactor from $100.00 to $110.00 and gave the company a “hold” rating in a report on Thursday, October 29th. B. Riley Financial reiterated a “buy” rating on shares of FormFactor in a report on Monday, October 19th. Finally, Weiss Ratings upgraded FormFactor from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 16th. Seven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $139.73.

FormFactor Price Performance

The stock has a 50-day moving average of $115.71 and a two-hundred day moving average of $113.50. The company has a current ratio of 4.08, a quick ratio of 3.34 and a debt-to-equity ratio of 0.01. The firm has a market cap of $7.44 billion, a price-to-earnings ratio of 43.51 and a beta of 1.18.

FormFactor (NASDAQ:FORM) last released its earnings results on Wednesday, October 28th. The semiconductor company reported $1.04 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.18. The company had revenue of $280.55 million for the quarter, compared to analysts’ expectations of $270.52 million. FormFactor had a return on equity of 18.88% and a net margin of 17.72%. The business’s revenue for the quarter was up 38.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.33 EPS. On average, analysts anticipate that FormFactor, Inc. will post 2.95 EPS for the current year.

Insider Activity

In related news, Director Kelley Steven-Waiss sold 2,100 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $96.10, for a total value of $201,810.00. Following the completion of the transaction, the director owned 24,426 shares in the company, valued at $2,347,338.60. The trade was a 7.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Mike Slessor sold 17,510 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $104.73, for a total value of $1,833,822.30. Following the completion of the transaction, the chief executive officer owned 466,694 shares in the company, valued at approximately $48,876,862.62. This represents a 3.62% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 46,710 shares of company stock worth $5,520,564. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On FormFactor

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FORM. Keating Financial Advisory Services Inc. purchased a new position in shares of FormFactor during the 2nd quarter valued at $25,000. V Square Quantitative Management LLC lifted its position in shares of FormFactor by 96.1% in the third quarter. V Square Quantitative Management LLC now owns 253 shares of the semiconductor company’s stock valued at $38,000 after acquiring an additional 124 shares in the last quarter. Persistent Asset Partners Ltd bought a new position in shares of FormFactor in the second quarter worth about $43,000. Mather Group LLC. bought a new position in shares of FormFactor in the third quarter worth about $44,000. Finally, Root Financial Partners LLC purchased a new stake in shares of FormFactor during the third quarter worth about $58,000. 98.76% of the stock is owned by institutional investors and hedge funds.

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.