Mike Slessor, CEO of FormFactor Inc. (NASDAQ:FORM), recently sold a total of $162,340 worth of company stock, according to a Form 4 filing with the Securities and Exchange Commission. The transactions took place on December 2, 2024, and involved the sale of 4,000 shares of common stock. FormFactor, with a market capitalization of $3.3 billion, maintains a strong financial position with more cash than debt on its balance sheet, according to InvestingPro data.
The shares were sold at prices ranging from $40.57 to $41.17, with the stock currently trading near its Fair Value based on InvestingPro analysis. Following these transactions, Slessor retains ownership of 526,531 shares of FormFactor. The company maintains a healthy current ratio of 4.76, indicating strong liquidity.
These sales were executed under a Rule 10b5-1 trading plan, which was adopted on November 20, 2023. This type of plan allows insiders to set up a predetermined schedule for selling stocks, providing a way to avoid potential accusations of insider trading. For deeper insights into FormFactor's financial health (rated as GOOD by InvestingPro) and access to 8+ additional ProTips, investors can explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, FormFactor, a top-tier semiconductor test equipment supplier, reported record Q3 revenue of $207.9 million, a 5.3% sequential increase and a 21.2% rise from the previous year. The company's non-GAAP earnings per share also met the highest expectations, with a non-GAAP gross margin of 42.2%. Despite these robust figures, FormFactor anticipates a decrease in Foundry and Logic probe-card demand, while projecting growth in DRAM probe-card revenue for Q4, especially with the introduction of initial HBM4 designs.
The company also revealed a sequential revenue increase in the system segment, attributed to advancements in quantum computing and silicon photonics. Operating expenses were reduced to $59.3 million, contributing to stable operating income figures. The company also increased its free cash flow to $20 million, with cash and investments amounting to $360 million.
For Q4, FormFactor projects revenue at $190 million, with a non-GAAP gross margin of 41%. The company is also implementing a share buyback program with $36.6 million remaining under its current authorization. In order to mitigate weak demand in mobile and client PC markets, FormFactor is pursuing a diversification strategy in Foundry and Logic. The company is also preparing for future growth opportunities in co-packaged optics, with volume production projected to commence between late 2025 and early 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.