LIVERMORE, CA—FormFactor Inc. (NASDAQ:FORM) CEO Mike Slessor has sold 4,000 shares of the company's common stock, according to a recent SEC filing. The sale, which took place on November 1, 2024, was conducted under a pre-arranged Rule 10b5-1 trading plan adopted last year. The shares were sold at a weighted average price of $38.8123, with the price range for the transaction spanning from $38.56 to $39.19. Following this transaction, Slessor retains direct ownership of 526,276 shares in the semiconductor company. The total value of the shares sold amounts to $155,249.
In other recent news, FormFactor Inc. reported record-breaking Q3 revenue of $207.9 million, marking a 5.3% sequential increase and a 21.2% rise from the previous year. The company's non-GAAP earnings per share also reached the top end of expectations, reflecting the strong revenue performance. Despite this, FormFactor anticipates a reduction in Foundry and Logic probe-card demand, while expecting a continued growth in DRAM probe-card revenue, particularly with initial HBM4 designs. The company also reported its third consecutive record in DRAM probe-card revenue, driven by strong demand for DDR5 and HBM. Operating expenses decreased to $59.3 million, contributing to stable operating income figures. Free cash flow increased to $20 million, with cash and investments totaling $360 million. Looking ahead, FormFactor projects Q4 revenue at $190 million and a non-GAAP gross margin of 41%.
InvestingPro Insights
FormFactor Inc.'s recent insider transaction occurs against a backdrop of mixed financial indicators. According to InvestingPro data, the company's market capitalization stands at $3.01 billion, with a P/E ratio of 22.32. This valuation comes as FormFactor demonstrates solid financial health, with InvestingPro Tips highlighting that the company holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations.
Despite CEO Mike Slessor's recent stock sale, FormFactor has shown positive performance in key areas. The company's revenue grew by 12.31% over the last twelve months, reaching $742.28 million. More impressively, FormFactor's EBITDA growth over the same period was a robust 141.36%, indicating significant improvement in operational efficiency.
However, investors should note that FormFactor's stock has faced recent headwinds. An InvestingPro Tip reveals that the stock has taken a significant hit over the last week and month, with 1-week and 1-month price total returns of -12.07% and -16.38%, respectively. This short-term volatility may explain the timing of the insider sale, although it's important to remember that the transaction was part of a pre-arranged trading plan.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for FormFactor, providing deeper insights into the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.