Zacks Investment Research Lowers FormFactor (FORM) to Sell

Zacks Investment Research lowered shares of FormFactor (NASDAQ:FORM) from a hold rating to a sell rating in a research note issued to investors on Wednesday morning.

According to Zacks, “FormFactor reported fourth quarter results wherein both the earnings and revenues have grown year over year. However, the company suffered from sluggish performance of DRAM and Flash product lines. Further, secular decline in the PC market remained an overhang for the company during the reported quarter. Additionally, the company’s exposure to the adverse effects of extreme pricing pressure in the semiconductor industry remain major concerns. Nevertheless, FormFactor’s increasing focus on the Mobile SoC and Mobile DRAM probe card segments continued to drive its top-line growth. Moreover, solid probe card demand in both Foundry and Logic markets contributed well. However, the nature of the business necessitates long lead times and customer concentration, which are headwinds.”

Other research analysts have also recently issued reports about the company. Sidoti lowered their target price on FormFactor from $18.00 to $16.00 and set a neutral rating on the stock in a report on Thursday, January 3rd. BidaskClub cut FormFactor from a buy rating to a hold rating in a report on Saturday, December 8th. ValuEngine upgraded FormFactor from a hold rating to a buy rating in a report on Thursday, November 1st. Finally, Craig Hallum cut FormFactor from a buy rating to a hold rating and boosted their target price for the stock from $16.00 to $17.00 in a report on Thursday, February 7th. One research analyst has rated the stock with a sell rating, four have given a hold rating and four have issued a buy rating to the company’s stock. The stock has an average rating of Hold and an average target price of $17.08.

Shares of FormFactor stock traded up $0.05 on Wednesday, hitting $15.90. 546,809 shares of the company were exchanged, compared to its average volume of 385,371. The stock has a market cap of $1.21 billion, a P/E ratio of 20.65, a P/E/G ratio of 1.99 and a beta of 1.66. FormFactor has a 1-year low of $11.10 and a 1-year high of $16.83. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.30 and a quick ratio of 2.54.

FormFactor (NASDAQ:FORM) last issued its earnings results on Wednesday, February 6th. The semiconductor company reported $0.31 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.26 by $0.05. The business had revenue of $140.90 million for the quarter, compared to analysts’ expectations of $135.93 million. FormFactor had a return on equity of 11.59% and a net margin of 19.64%. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.24 EPS. As a group, research analysts expect that FormFactor will post 0.69 EPS for the current fiscal year.

In other news, Director Dennis Thomas St sold 8,000 shares of FormFactor stock in a transaction that occurred on 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 approximately $719,550. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Kelley Steven-Waiss sold 7,000 shares of FormFactor stock in a transaction that occurred on Tuesday, February 12th. The shares were 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. 1.30% of the stock is currently owned by insiders.

Several hedge funds have recently added to or reduced their stakes in the company. Csenge Advisory Group purchased a new stake in FormFactor in the third quarter valued at approximately $25,000. Oregon Public Employees Retirement Fund purchased a new stake in FormFactor in the fourth quarter valued at approximately $28,000. PNC Financial Services Group Inc. raised its position in FormFactor by 22.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 5,120 shares of the semiconductor company’s stock valued at $72,000 after purchasing an additional 924 shares during the period. Advisor Group Inc. raised its position in FormFactor by 28.0% in the fourth quarter. Advisor Group Inc. now owns 6,311 shares of the semiconductor company’s stock valued at $89,000 after purchasing an additional 1,381 shares during the period. Finally, First Quadrant L P CA purchased a new stake in FormFactor in the fourth quarter valued at approximately $90,000. 95.32% of the stock is currently owned by hedge funds and other institutional investors.

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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