FormFactor Inc. (FORM) expanding its growth trajectory ahead

FormFactor Inc. (NASDAQ: FORM) stock jumped 1.86% on Thursday to $30.09 against a previous-day closing price of $29.54. With 0.55 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.4 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $30.67 whereas the lowest price it dropped to was $29.95. The 52-week range on FORM shows that it touched its highest point at $42.24 and its lowest point at $18.15 during that stretch. It currently has a 1-year price target of $34.00. 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 down-trending over the past week, with a drop of -2.50%, but this was up by 11.57% over a month. Three-month performance dropped to -1.15% while six-month performance rose 33.44%. The stock lost -24.11% in the past year, while it has gained 35.36% so far this year. A look at the trailing 12-month EPS for FORM yields 0.28 with Next year EPS estimates of 1.29. For the next quarter, that number is 0.13. This implies an EPS growth rate of -38.80% for this year and 89.04% 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 2.50%.

Float and Shares Shorts:

At present, 77.07 million FORM shares are outstanding with a float of 76.31 million shares on hand for trading. On May 14, 2023, short shares totaled 2.8 million, which was 3.63% higher than short shares on Apr 13, 2023. 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 99.00% of FORM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.42% of FORM, in contrast to 5.34% held by mutual funds. Shares owned by individuals account for 39.42%. As the largest shareholder in FORM with 14.88% of the stake, BlackRock Fund Advisors holds 11,481,755 shares worth 11,481,755. A second-largest stockholder of FORM, The Vanguard Group, Inc., holds 8,894,286 shares, controlling over 11.53% of the firm’s shares. EARNEST Partners LLC is the third largest shareholder in FORM, holding 7,098,253 shares or 9.20% stake. With a 7.25% stake in FORM, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,594,717 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of FORM stock, is the second-largest Mutual Fund holder. It holds 2,387,309 shares valued at 65.2 million. Vanguard Small Cap Index Fund holds 2.61% of the stake in FORM, owning 2,015,501 shares worth 55.04 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, FORM reported revenue of $203.91M and operating income of $32.65M. The EBITDA in the recently reported quarter was $43.02M and diluted EPS was $0.38.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FORM since 0 analysts follow the stock currently. 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 $30.00, the average target price over the next 12 months is $33.67. Based on these targets, FORM could surge 32.93% to reach the target high and fall by -0.3% to reach the target low. Reaching the average price target will result in a growth of 11.9% 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.

Summary of Insider Activity:

Insiders traded FORM stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 4,759 shares were sold. The number of buy transactions has increased to 8 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 255,097 while 151,557 shares were sold.

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