Take off with FormFactor Inc. (FORM): Get ready for trading

FormFactor Inc. (NASDAQ: FORM) stock jumped 8.17% on Monday to $27.93 against a previous-day closing price of $25.82. With 0.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.62 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $27.98 whereas the lowest price it dropped to was $25.66. The 52-week range on FORM shows that it touched its highest point at $44.40 and its lowest point at $18.15 during that stretch. It currently has a 1-year price target of $30.30. Beta for the stock currently stands at 1.21.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FORM was up-trending over the past week, with a rise of 11.05%, but this was up by 23.37% over a month. Three-month performance surged to 8.89% while six-month performance fell -29.24%. The stock lost -32.45% in the past year, while it has gained 25.64% so far this year. A look at the trailing 12-month EPS for FORM yields 1.14 with Next year EPS estimates of 0.84. For the next quarter, that number is 0.03. This implies an EPS growth rate of 6.70% for this year and -31.51% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 65.70%.

Float and Shares Shorts:

At present, 77.25 million FORM shares are outstanding with a float of 76.31 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.61 million, which was 4.68% higher than short shares on Sep 14, 2022. In addition to Dr. Michael D. Slessor as the firm’s CEO, Pres & Director, Mr. Shai Shahar serves as its Chief Financial Officer.


Institutional Ownership:

Through their ownership of 97.45% of FORM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.86% of FORM, in contrast to 5.39% held by mutual funds. Shares owned by individuals account for 39.95%. As the largest shareholder in FORM with 14.47% of the stake, BlackRock Fund Advisors holds 11,142,413 shares worth 11,142,413. A second-largest stockholder of FORM, The Vanguard Group, Inc., holds 8,544,687 shares, controlling over 11.09% of the firm’s shares. EARNEST Partners LLC is the third largest shareholder in FORM, holding 7,052,026 shares or 9.15% stake. With a 7.40% stake in FORM, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,698,323 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.04% of FORM stock, is the second-largest Mutual Fund holder. It holds 2,343,232 shares valued at 52.09 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in FORM, owning 1,984,653 shares worth 44.12 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FORM since 10 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FORM analysts setting a high price target of $40.00 and a low target of $25.00, the average target price over the next 12 months is $32.10. Based on these targets, FORM could surge 43.22% to reach the target high and fall by -10.49% to reach the target low. Reaching the average price target will result in a growth of 14.93% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FORM will report FY 2022 earnings on 01/31/2024. Analysts have provided yearly estimates in a range of $1.46 being high and $1.21 being low. For FORM, this leads to a yearly average estimate of $1.25. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. FormFactor Inc. surprised analysts by $0.03 when it reported $0.24 EPS against a consensus estimate of $0.21. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.29 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.06.

Summary of Insider Activity:

Insiders traded FORM stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 288,158 while 145,098 shares were sold.

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