FormFactor (FORM) Cut to Sell at Zacks Investment Research

FormFactor (NASDAQ:FORM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “FormFactor's Probe Card business remains very strong and is one of the most important revenue contributor. The demand for probe card is being driven by strong adioption of new designs. The strength across foundry & logic and DRAM segments also remains encouraging. In the past 12 months, the stock has outperformed the industry it belongs to. The company has proved agile in dealing with the secular decline in the PC market by increasing focus on the Mobile SoC and Mobile DRAM probe card segments where growth prospects remain very bright. However, nature of the business necessitates long lead times and customer concentration, which should be kept in mind when investing in the shares.”

Several other brokerages also recently commented on FORM. Needham & Company LLC raised FormFactor from a “buy” rating to a “strong-buy” rating and boosted their target price for the stock from $20.00 to $22.00 in a research note on Thursday, December 14th. B. Riley reissued a “buy” rating and set a $22.00 target price (up previously from $20.00) on shares of FormFactor in a research note on Thursday, November 2nd. Finally, Citigroup boosted their target price on FormFactor from $16.00 to $17.40 and gave the stock a “neutral” rating in a research note on Thursday, November 2nd. One investment analyst has rated the stock with a sell rating, two have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $18.34.

Shares of FormFactor (NASDAQ FORM) traded down $0.50 during midday trading on Monday, reaching $15.00. The company’s stock had a trading volume of 812,145 shares, compared to its average volume of 694,157. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.45 and a current ratio of 3.16. The firm has a market capitalization of $1,120.00, a P/E ratio of 57.69, a price-to-earnings-growth ratio of 0.83 and a beta of 1.46. FormFactor has a 12-month low of $10.45 and a 12-month high of $18.65.

FormFactor (NASDAQ:FORM) last issued its earnings results on Tuesday, October 31st. The semiconductor company reported $0.34 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.32 by $0.02. The firm had revenue of $143.74 million during the quarter, compared to the consensus estimate of $140.83 million. FormFactor had a return on equity of 16.80% and a net margin of 3.68%. The business’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.22 earnings per share. equities research analysts forecast that FormFactor will post 1.04 EPS for the current year.

In other news, CFO Michael M. Ludwig sold 16,845 shares of the business’s stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $17.50, for a total transaction of $294,787.50. Following the sale, the chief financial officer now directly owns 241,132 shares in the company, valued at $4,219,810. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Richard Delateur sold 15,000 shares of the business’s stock in a transaction dated Tuesday, November 7th. The stock was sold at an average price of $17.69, for a total value of $265,350.00. Following the sale, the director now owns 25,000 shares in the company, valued at $442,250. The disclosure for this sale can be found here. Insiders own 2.30% of the company’s stock.

Several large investors have recently added to or reduced their stakes in FORM. Schwab Charles Investment Management Inc. grew its holdings in shares of FormFactor by 6.6% during the second quarter. Schwab Charles Investment Management Inc. now owns 334,956 shares of the semiconductor company’s stock worth $4,154,000 after purchasing an additional 20,777 shares during the last quarter. Legal & General Group Plc grew its holdings in shares of FormFactor by 2.8% during the second quarter. Legal & General Group Plc now owns 17,068 shares of the semiconductor company’s stock worth $215,000 after purchasing an additional 469 shares during the last quarter. Swiss National Bank grew its holdings in shares of FormFactor by 7.0% during the second quarter. Swiss National Bank now owns 117,900 shares of the semiconductor company’s stock worth $1,462,000 after purchasing an additional 7,700 shares during the last quarter. Teachers Advisors LLC grew its holdings in shares of FormFactor by 449.9% during the second quarter. Teachers Advisors LLC now owns 645,559 shares of the semiconductor company’s stock worth $8,005,000 after purchasing an additional 528,164 shares during the last quarter. Finally, TIAA CREF Investment Management LLC grew its holdings in shares of FormFactor by 10.6% during the second quarter. TIAA CREF Investment Management LLC now owns 237,909 shares of the semiconductor company’s stock worth $2,950,000 after purchasing an additional 22,713 shares during the last quarter. Institutional investors own 84.55% of the company’s stock.

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FormFactor Company Profile

FormFactor, Inc is a provider of test and measurement solutions. The Company’s segments include the Probe Cards segment and Systems segment. The Company designs, manufactures and sells multiple product lines, including probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, reliability test systems, and related services.

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