FormFactor (FORM) Rating Lowered 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 note issued on Friday.

According to Zacks, “FormFactor’s sluggish demand for DRAM and Flash product lines is an overhang. Additionally, the company’s exposure to the adverse effects of extreme pricing pressure in the semiconductor industry remains major concerns. Also, long lead times and customer concentration remain concerns. Notably, shares of the company have underperformed the industry it belongs to over a year. However, the increasing focus on the Mobile SoC and Mobile DRAM probe card segments continue to drive its top-line growth. Moreover, solid probe card demand in both Foundry and Logic markets remain a major positive.”

FORM has been the topic of a number of other research reports. Sidoti cut shares of FormFactor from a “buy” rating to a “neutral” rating in a research report on Monday, December 3rd. BidaskClub lowered shares of FormFactor from a “buy” rating to a “hold” rating in a research note on Friday, March 1st. ValuEngine raised shares of FormFactor from a “hold” rating to a “buy” rating in a research note on Monday, November 26th. Finally, Craig Hallum lowered shares of FormFactor from a “buy” rating to a “hold” rating and lifted their target price for the company from $16.00 to $17.00 in a research note on Thursday, February 7th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $17.08.

NASDAQ:FORM traded up $0.51 during trading hours on Friday, reaching $15.89. The company’s stock had a trading volume of 283,118 shares, compared to its average volume of 284,884. The stock has a market cap of $1.16 billion, a PE ratio of 20.64, a PEG ratio of 1.87 and a beta of 1.64. FormFactor has a 1 year low of $11.10 and a 1 year high of $16.83. The company has a quick ratio of 2.54, a current ratio of 3.30 and a debt-to-equity ratio of 0.06.

FormFactor (NASDAQ:FORM) last issued its earnings results on Wednesday, February 6th. The semiconductor company reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.05. The company had revenue of $140.90 million for the quarter, compared to analysts’ expectations of $135.93 million. FormFactor had a net margin of 19.64% and a return on equity of 11.59%. The firm’s revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.24 EPS. Sell-side analysts anticipate that FormFactor will post 0.69 EPS for the current year.

In related news, Director Dennis Thomas St sold 8,000 shares of the business’s stock in a transaction dated Wednesday, February 20th. The shares were sold at an average price of $15.99, for a total transaction of $127,920.00. Following the sale, the director now owns 45,000 shares of the company’s stock, valued at $719,550. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Kelley Steven-Waiss sold 7,000 shares of the business’s stock in a transaction dated Tuesday, February 12th. The stock was sold at an average price of $15.50, for a total transaction of $108,500.00. Following the sale, the director now directly owns 12,000 shares in the company, valued at approximately $186,000. The disclosure for this sale can be found here. Insiders have sold 16,200 shares of company stock worth $254,924 in the last three months. 1.30% of the stock is currently owned by insiders.

A number of large investors have recently bought and sold shares of FORM. Earnest Partners LLC boosted its stake in FormFactor by 52.9% during the third quarter. Earnest Partners LLC now owns 4,433,459 shares of the semiconductor company’s stock worth $60,960,000 after acquiring an additional 1,534,460 shares in the last quarter. Norges Bank bought a new position in shares of FormFactor in the fourth quarter worth approximately $13,721,000. BlackRock Inc. lifted its stake in shares of FormFactor by 6.1% in the third quarter. BlackRock Inc. now owns 10,817,133 shares of the semiconductor company’s stock worth $148,735,000 after buying an additional 626,010 shares in the last quarter. Vanguard Group Inc lifted its stake in shares of FormFactor by 8.7% in the third quarter. Vanguard Group Inc now owns 7,472,866 shares of the semiconductor company’s stock worth $102,751,000 after buying an additional 600,660 shares in the last quarter. Finally, Vanguard Group Inc. lifted its stake in shares of FormFactor by 8.7% in the third quarter. Vanguard Group Inc. now owns 7,472,866 shares of the semiconductor company’s stock worth $102,751,000 after buying an additional 600,660 shares in the last quarter. 94.42% of the stock is currently owned by institutional investors and hedge funds.

FormFactor Company Profile

FormFactor, Inc designs, manufactures, and sells probe cards, analytical probes, probe stations, integrated measurement systems, thermal sub-systems, and reliability test systems. The company offers probe cards that are used to test various semiconductor device types, including system on a chip products, mobile application processors, microprocessors, microcontrollers, and graphic processors, as well as radio frequency, analog, mixed signal, image sensor, electro-optical, dynamic random access memory, NAND flash memory, and NOR flash memory devices; and analytical probes, which are used for a range of applications, including device characterization, electrical simulation model development, failure analysis, and prototype design debugging for universities, research institutions, semiconductor integrated device manufacturers, semiconductor foundries, and fabless semiconductor companies.

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