FormFactor, Inc.

The stock is in a corrective phase after a strong run, still above the 200-day average but well below the 50-day, which points to a broken near-term trend rather than a long-term downtrend. It remains far under the 52-week high, so the setup is a reset inside a larger secular advance, not a collapse.

Street sentiment stays constructive: consensus is Buy, with an average target of 144.67 versus a last close of 107.11. Recent actions lean positive, including upgrades from B. Riley, Evercore ISI, and Craig-Hallum, while the target cluster has moved up sharply into the 118-175 range.

The next print carries a favorable beat backdrop, with FormFactor beating EPS in 5 of the last 7 quarters. Estimates point to 2.45 EPS for 2026 and 3.07 for 2027, so shareholders should watch whether demand and margins keep supporting that step-up after the upcoming July 29 report.

Recent insider activity is clearly net selling, led by repeated CEO sales and a director sale in June. The only non-sale item is a director gift, which is not a discretionary buy signal. The pattern reads as distribution rather than accumulation.

Profitability is solid but not elite, with gross margin at 42.2%, operating margin at 17.7%, and net margin at 8.1%. Growth remains strong, with revenue up 32% year over year and earnings up 225%, while the balance sheet is net cash positive by $231.4 million.

FormFactor’s edge is its probe-card and test-equipment franchise tied to advanced semiconductor validation, which supports better growth than slower equipment peers when demand is healthy. Valuation is rich at 66.1x earnings, so the market is paying for execution and the next leg of cycle recovery.