Steven-Waiss Kelley, a director at FormFactor Inc. (NASDAQ:FORM), recently sold 3,870 shares of the company’s common stock. The transaction, which took place on March 5, 2025, was executed at a price of $31.02 per share, amounting to a total value of $120,047. The sale comes as FormFactor’s stock trades near its 52-week low of $30.96, having declined about 27% over the past year. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt.
Following the sale, Kelley retains ownership of 32,551 shares in the semiconductor company, currently valued at approximately $1 million based on the market price. This transaction was disclosed in a filing with the Securities and Exchange Commission, providing transparency to investors regarding changes in insider holdings. With a market capitalization of $2.47 billion and an overall "FAIR" financial health rating from InvestingPro, FormFactor shows mixed signals - trading at high earnings multiples while maintaining solid fundamentals. For deeper insights into FormFactor’s valuation and 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, FormFactor reported its fourth-quarter earnings, revealing an earnings per share (EPS) of $0.27, which fell short of the consensus estimate by $0.02. Revenue for the quarter reached $189.5 million, slightly below the projected $190.12 million, despite a 12.7% increase from the previous year. The company also provided guidance for the first quarter of 2025, with expected EPS ranging from $0.15 to $0.23, significantly under the consensus estimate of $0.33, and anticipated revenue between $165 million and $175 million, below the expected $192.93 million. Following these announcements, B.Riley downgraded FormFactor’s stock from Buy to Neutral, citing weaker demand in the PC and smartphone markets affecting probe card demand and a retreat in gross margins. Stifel analysts, however, maintained a Hold rating with a $48 price target, indicating cautious optimism and emphasizing FormFactor’s stable position in the High Bandwidth (NASDAQ:BAND) Memory (HBM) DRAM market.
Additionally, FormFactor announced a strategic partnership with Delft Circuits to enhance quantum computing scalability by integrating Cri/oFlex® cabling into its cryogenic test systems. This collaboration aims to significantly increase the system’s total capacity, offering a scalable pathway for growth in quantum computing infrastructures. FormFactor also acquired a minority interest in FICT Limited, a supplier of advanced probe card components, although this acquisition is not expected to materially impact operations. Despite these developments, FormFactor faces challenges due to U.S. BIS shipment restrictions, which are expected to reduce China probe card demand by approximately $11 million quarter-over-quarter.
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