Zacks Investment Research Upgrades FormFactor (NASDAQ:FORM) to “Buy”

Zacks Investment Research upgraded shares of FormFactor (NASDAQ:FORM) from a hold rating to a buy rating in a research report report published on Monday, Zacks.com reports. Zacks Investment Research currently has $24.00 price target on the semiconductor company’s stock.

According to Zacks, “FormFactor reported strong third-quarter earnings driven by solid demand in both DRAM and Flash applications. Further, its increasing focus on Mobile SoC and Mobile DRAM probe card segments continues to be a tailwind. FormFactor remains optimistic about strong relationships with semiconductor companies, backed by the ability to serve their electrical test and measurement requirements. However, memory spending remained weak in the last reported quarter. Additionally, adverse effects of extreme pricing pressure in the semiconductor industry and long lead times remain major concerns. Notably, the stock has outperformed the industry it belongs to over a year.”

A number of other brokerages have also weighed in on FORM. BidaskClub upgraded FormFactor from a buy rating to a strong-buy rating in a research note on Saturday, October 5th. Stifel Nicolaus set a $24.00 target price on FormFactor and gave the stock a buy rating in a research note on Friday, October 25th. Northland Securities reiterated a hold rating and set a $20.00 target price on shares of FormFactor in a research note on Thursday, October 31st. Needham & Company LLC increased their target price on FormFactor from $19.00 to $24.00 and gave the stock a buy rating in a research note on Thursday, October 31st. Finally, B. Riley increased their target price on FormFactor from $22.00 to $25.00 and gave the stock a buy rating in a research note on Tuesday, October 1st. Four analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. FormFactor has a consensus rating of Buy and a consensus target price of $21.38.

Shares of NASDAQ FORM traded down $0.02 during trading hours on Monday, reaching $22.36. 793,900 shares of the stock were exchanged, compared to its average volume of 345,618. The firm has a market capitalization of $1.69 billion, a price-to-earnings ratio of 29.04 and a beta of 1.72. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.14 and a current ratio of 2.75. FormFactor has a 52 week low of $12.72 and a 52 week high of $22.80. The stock’s fifty day simple moving average is $20.45 and its 200 day simple moving average is $17.39.

FormFactor (NASDAQ:FORM) last announced its earnings results on Wednesday, October 30th. The semiconductor company reported $0.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.21 by $0.01. The company had revenue of $140.60 million for the quarter, compared to analyst estimates of $140.54 million. FormFactor had a return on equity of 8.82% and a net margin of 19.18%. The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.26 earnings per share. Research analysts predict that FormFactor will post 0.68 EPS for the current fiscal year.

In related news, Director Edward Rogas, Jr. sold 38,000 shares of the stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $19.85, for a total transaction of $754,300.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Dennis Thomas St sold 3,000 shares of the stock in a transaction that occurred on Tuesday, August 20th. The stock was sold at an average price of $17.26, for a total value of $51,780.00. Following the sale, the director now directly owns 51,000 shares in the company, valued at approximately $880,260. The disclosure for this sale can be found here. Insiders have sold 100,035 shares of company stock worth $1,834,873 in the last three months. 1.88% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the stock. Meeder Asset Management Inc. grew its position in FormFactor by 343.9% during the second quarter. Meeder Asset Management Inc. now owns 3,298 shares of the semiconductor company’s stock worth $51,000 after buying an additional 2,555 shares in the last quarter. Quantamental Technologies LLC acquired a new stake in FormFactor during the second quarter worth approximately $58,000. SG Americas Securities LLC acquired a new stake in FormFactor during the third quarter worth approximately $108,000. First Quadrant L P CA acquired a new stake in FormFactor during the second quarter worth approximately $134,000. Finally, Flinton Capital Management LLC grew its position in FormFactor by 10.7% during the second quarter. Flinton Capital Management LLC now owns 9,568 shares of the semiconductor company’s stock worth $150,000 after buying an additional 928 shares in the last quarter. 91.40% of the stock is currently owned by institutional investors and hedge funds.

About FormFactor

FormFactor, Inc designs, manufactures, and sells probe cards, analytical probes, probe stations, integrated measurement systems, and thermal sub-systems, as well as provides related services. It operates in two segments, Probe Cards and 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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