FormFactor CEO Sells $1.4M After Equity Deal
FormFactor reported four straight earnings beats and holds $0.35 billion in cash versus $0.03 billion in debt. CEO Mike Slessor sold $1.39 million in shares the day after an equity offering announceme
FormFactor CEO Sells $1.4M the Day After Equity Deal
NEW YORK, October 21 —
When FormFactor, Inc. (FORM) disclosed an unregistered equity offering on October 13, CEO Mike Slessor sold $1.39 million in open-market shares the following day at $124, $126 per share, his third selling episode since August. The stock now sits at $107.70, below those transaction prices, and four consecutive EPS beats have not reversed the retreat.
- CEO sold $5.52M in open-market shares across three episodes since August; open-market purchases: $0.
- Four straight EPS beats, surprise margin accelerating from 32.2% to 34.4% on rising absolute EPS.
- Stock at $107.70 vs. analyst consensus $153.89; trailing revenue grew 31.9% to $0.90B.
Three Sales in 90 Days, Zero Purchases
The October 13 8-K disclosed an unregistered equity placement with no sales commissions or finders' fees, per filings. The next day, Slessor executed three open-market transactions totaling 11,098 shares at $124.23, $125.92. That followed $2.10 million in sales on August 14 and $1.83 million on September 16, covering a price corridor from $104.26 to $133.33 with no open-market purchases at any point. Director Kelley Steven-waiss also sold 2,100 shares at $96.10 in September. Insiders hold 0.7% of outstanding shares; the selling pattern narrows that stake further at every price level the stock has occupied this quarter.
Four Beats, One Dilutive Deal
FormFactor designs and sells probe cards, the hardware that tests semiconductor chips on the wafer before packaging, serving DRAM, NAND flash, GPU, and mobile processor production lines, along with probe stations and cryogenic systems used in quantum computing research. Trailing revenue reached $0.90 billion, up 31.9% year-over-year, with gross margin of 46.2%, free cash flow of $115 million, and $0.35 billion in cash against $0.03 billion in debt. Each of the last four quarters beat consensus EPS: $0.33, $0.46, $0.56, $0.82, with the beat margin expanding every period. Analyst consensus stands at $153.89. The equity offering adds dilution to a balance sheet that already holds more cash than debt.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FORM | $8.4B | 27.8x | +160.8% |
| ONTO | $10.8B | 18.8x | +75.0% |
| UCTT | $2.3B | 8.3x | +76.5% |
| ENTG | $21.8B | 28.1x | +54.2% |
| COHU | $2.5B | 29.2x | +142.5% |
| MTSI | $20.1B | 31.0x | +93.5% |
What the Next Quarter Must Show
The stock's forward P/E of 27.8x on trailing EPS of $1.45 prices in continued growth, with short interest at 5.9% of the float signaling market skepticism. Two data points will clarify the current setup: whether EPS extends the accelerating beat pattern beyond $0.82 in the next quarterly release, and whether management discloses the purpose of an equity placement on a near-net-cash balance sheet. Both arrive at the next earnings call. For the latest numbers, run the free FormFactor, Inc. deep-dive; to stress-test the valuation, see the DCF calculator.
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Frequently Asked Questions
How much did FormFactor CEO sell since August?
CEO Mike Slessor sold $5.52 million in open-market shares across three episodes since August, $2.10 million on August 14, $1.83 million on September 16, and $1.39 million in October following the equity offering announcement. He executed no open-market purchases at any of these prices.
What are FormFactor's earnings results?
FormFactor reported four consecutive earnings beats, with EPS of $0.33, $0.46, $0.56, and $0.82, with the beat margin expanding every period. Trailing revenue grew 31.9% year-over-year to $0.90 billion, with gross margin of 46.2% and free cash flow of $115 million.
What is FormFactor's analyst price target?
Analyst consensus for FormFactor stands at $153.89 per share. The stock currently trades at $107.70.
Does FormFactor have significant debt?
No, FormFactor holds more cash than debt. The company has $0.35 billion in cash versus only $0.03 billion in debt.
What should investors watch for next?
The stock's forward P/E of 27.8x prices in continued growth. The next earnings call will clarify whether EPS extends the accelerating beat pattern beyond $0.82 and whether management discloses the purpose of the recent equity placement on a near-net-cash balance sheet.
FormFactor disclosed an unregistered equity offering in an October 13 8-K, and CEO Mike Slessor sold $1.39 million in shares the following day at $124–$126 — his third open-market selling episode since August, and at prices now above the stock's current level of $107.70.