FormFactor (NASDAQ:FORM) Downgraded 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 to investors on Monday, Zacks.com reports. They presently have a $19.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price target points to a potential upside of 13.50% from the company’s current price.

According to Zacks, “FormFactor reported strong second-quarter results driven by steady overall demand and good execution. The company rides on overall steady demand and efficient execution of strategies. Additionally, growing probe card demand in both Foundry and Logic markets remains a major positive. Further, its increasing focus on Mobile SoC and Mobile DRAM probe card segments continues to be a tailwind. FormFactor remains optimistic on strong relationships with semiconductor companies, backed by the ability to serve their electrical test and measurement requirements. However, sluggish demand for DRAM and Flash product lines remains a woe. 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.”

Several other research firms have also issued reports on FORM. Stifel Nicolaus lifted their price objective on FormFactor from $20.00 to $21.00 and gave the company a “buy” rating in a research note on Thursday. BidaskClub raised FormFactor from a “hold” rating to a “buy” rating in a research note on Friday, July 26th. DA Davidson lifted their price objective on FormFactor to $21.00 and gave the company a “buy” rating in a research note on Wednesday, April 10th. Northland Securities lowered FormFactor from an “outperform” rating to a “market perform” rating and lifted their price objective for the company from $16.50 to $18.00 in a research note on Thursday, May 2nd. Finally, Needham & Company LLC initiated coverage on FormFactor in a research note on Monday, June 10th. They set a “buy” rating and a $19.00 price objective for the company. One research analyst has rated the stock with a sell rating, three have given a hold rating and five have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $18.71.

NASDAQ:FORM traded down $0.84 during trading hours on Monday, hitting $16.74. 8,618 shares of the company’s stock traded hands, compared to its average volume of 275,813. The company has a market cap of $1.31 billion, a price-to-earnings ratio of 21.74, a P/E/G ratio of 2.29 and a beta of 1.69. FormFactor has a 52 week low of $11.38 and a 52 week high of $19.90. The company has a fifty day moving average of $15.59. The company has a current ratio of 3.38, a quick ratio of 2.54 and a debt-to-equity ratio of 0.07.

FormFactor (NASDAQ:FORM) last posted its quarterly earnings data on Wednesday, July 31st. The semiconductor company reported $0.21 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.14 by $0.07. The company had revenue of $138.00 million during the quarter, compared to analyst estimates of $134.65 million. FormFactor had a return on equity of 9.73% and a net margin of 19.27%. The firm’s quarterly revenue was up 1.8% on a year-over-year basis. During the same quarter last year, the company earned $0.27 earnings per share. As a group, equities research analysts anticipate that FormFactor will post 0.62 earnings per share for the current fiscal year.

In other FormFactor news, Director Raymond A. Link sold 5,000 shares of FormFactor stock in a transaction dated Thursday, June 27th. The stock was sold at an average price of $15.39, for a total transaction of $76,950.00. Following the completion of the sale, the director now owns 56,602 shares of the company’s stock, valued at $871,104.78. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Raymond A. Link sold 4,000 shares of FormFactor stock in a transaction dated Tuesday, May 21st. The stock was sold at an average price of $15.58, for a total value of $62,320.00. Following the sale, the director now directly owns 49,602 shares of the company’s stock, valued at approximately $772,799.16. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 10,200 shares of company stock valued at $158,074. Corporate insiders own 1.88% of the company’s stock.

A number of hedge funds have recently modified their holdings of the business. Meeder Asset Management Inc. increased its stake in shares of FormFactor by 343.9% in the 2nd quarter. Meeder Asset Management Inc. now owns 3,298 shares of the semiconductor company’s stock worth $51,000 after purchasing an additional 2,555 shares in the last quarter. Swiss National Bank increased its stake in shares of FormFactor by 2.6% in the 2nd quarter. Swiss National Bank now owns 138,600 shares of the semiconductor company’s stock worth $2,172,000 after purchasing an additional 3,500 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in FormFactor by 7.5% in the 2nd quarter. Envestnet Asset Management Inc. now owns 65,235 shares of the semiconductor company’s stock worth $1,022,000 after buying an additional 4,536 shares in the last quarter. Redmond Asset Management LLC increased its stake in FormFactor by 3.3% in the 2nd quarter. Redmond Asset Management LLC now owns 31,478 shares of the semiconductor company’s stock worth $493,000 after buying an additional 1,000 shares in the last quarter. Finally, Janus Henderson Group PLC increased its stake in FormFactor by 59.0% in the 2nd quarter. Janus Henderson Group PLC now owns 41,950 shares of the semiconductor company’s stock worth $657,000 after buying an additional 15,573 shares in the last quarter. 92.98% of the stock is owned by hedge funds and other institutional investors.

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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