Thomas St. Dennis, a director at FormFactor Inc. (NASDAQ:FORM), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, St. Dennis sold 3,100 shares of FormFactor common stock on November 5, 2024. The shares were sold at a weighted average price of $39.1075, with the total transaction amounting to approximately $121,233.
Following this transaction, St. Dennis holds 37,429 shares of FormFactor. The sale was conducted with a price range of $39.10 to $39.135 per share.
In other recent news, semiconductor test equipment supplier FormFactor, Inc. reported a record-breaking 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 met the top end of expectations, reflecting a robust revenue performance. However, FormFactor anticipates a reduction in Foundry and Logic probe-card demand due to weak mobile and client PC markets, while expecting DRAM probe-card revenue to continue to grow in Q4, particularly with initial HBM4 designs. Operating expenses decreased to $59.3 million, contributing to stable operating income figures, and free cash flow increased to $20 million. The company also announced a share buyback program with $36.6 million remaining under its current authorization. Despite some challenges, these developments reflect FormFactor's resilience and adaptability in the dynamic semiconductor industry.
InvestingPro Insights
While Thomas St. Dennis's recent sale of FormFactor Inc. (NASDAQ:FORM) shares may raise eyebrows, a closer look at the company's financials through InvestingPro data provides additional context for investors.
FormFactor's market capitalization stands at $3.23 billion, reflecting its position in the semiconductor industry. The company's revenue growth is noteworthy, with a 21.18% increase in the most recent quarter, signaling strong demand for its products. This growth is complemented by a healthy gross profit margin of 40.87% over the last twelve months, indicating efficient operations.
InvestingPro Tips highlight that FormFactor holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Additionally, the company's liquid assets exceed short-term obligations, further strengthening its financial position. These factors may provide some reassurance to investors in light of the director's stock sale.
However, it's worth noting that FormFactor's stock has experienced a significant decline recently, with a 10.45% drop in the past week and a 15.34% decrease over the last month. This downturn could be influencing insider trading decisions and may warrant closer attention from investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for FormFactor, providing deeper insights into the company's performance and outlook.
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