FormFactor CEO Sold at $105, Stock Now at $136
FormFactor CEO Mike Slessor sold $1.83 million of shares at $104-106 on September 16, a third distinct open-market selling episode following similar sales in July and August — yet FORM now trades at $
FormFactor CEO Sold at $105, Stock Now at $136
NEW YORK, September 29 —
FormFactor, Inc. (FORM) CEO Mike Slessor has sold shares in three separate open-market episodes since July, at $116-121, then $128-133, then $104-106 on September 16, and the stock now trades at $136.12, above every transaction in the series. The pattern raises a question fundamentals alone cannot settle: whether a CEO who designs semiconductor test equipment for a living is a reliable judge of when his own stock is fully valued.
- Four consecutive EPS beats averaging 31% positive surprise; trailing revenue +31.9% to $0.90B [8-K]
- CEO Slessor's September sales at $104-106 sit $30 below current price; $4.69M sold across the period with zero insider purchases
- FORM at $136.12 vs analyst consensus; forward P/E 38.4x on $350M cash, $30M debt
Three Bites at a Falling Price
FormFactor makes the probe cards that semiconductor manufacturers press against chips during wafer-level testing, touching every GPU, DRAM module, and NAND flash die before it ships, a toll-booth position in the AI hardware buildout. Slessor sold 4,735 shares in July at up to $121.30, then 16,002 shares in August at up to $133.33, then 17,510 shares on September 16 at $104.26 to $105.80, each tranche at prices the market has since surpassed. The September prices are $23 to $29 below his August prices, meaning he sold cheaper as the stock recovered, not cheaper because the business deteriorated. FORM crossed back above its 200-day moving average roughly four days before this article was written.
What the Beats Say
The operating picture makes the selling pattern harder to dismiss as routine. FormFactor has beaten consensus EPS in each of the last four quarters by margins of 27% to 34%, the most recent quarter printing $0.82 against a $0.61 estimate. Trailing revenue reached $0.90 billion, up 31.9%, with gross margin at 46.2% and free cash flow of $115 million. A fortress balance sheet of $350 million in cash against $30 million in debt gives management no financing pressure that might explain systematic share liquidation. Institutional investors hold 94.6% of shares; insiders own just 0.8% of the float, so Slessor's sales represent a significant share of the insider pool. Run the free FormFactor, Inc. deep-dive →
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FORM | $10.6B | 38.4x | +259.6% |
| ONTO | $18.6B | 26.1x | +123.4% |
| UCTT | $3.6B | 13.7x | +186.5% |
| ENTG | $23.6B | 30.9x | +62.9% |
| COHU | $3.1B | 35.7x | +225.0% |
| MTSI | $21.7B | 33.5x | +123.8% |
The Number That Settles the Argument
Pre-scheduled 10b5-1 plans are the standard rebuttal to insider-selling concern, and the filings do not confirm or deny one here. What the record does show is a CEO who has now sold below the prevailing market price three times running. The forward P/E of 38.4x prices continued beat momentum; if the next quarterly report narrows that positive-surprise margin toward single digits, the valuation cushion shrinks and Slessor's exits at $104-133 will look prescient rather than early. The specific number to watch: whether EPS surprise in the next print holds above 20%. Below that, the stock's premium to consensus, currently a thin $1.50, evaporates.
Current fundamentals, valuation and filing history for FormFactor, Inc. (FORM) are tracked on its Basis Report page.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
FormFactor CEO Mike Slessor sold $1.83 million of shares at $104-106 on September 16, a third distinct open-market selling episode following similar sales in July and August — yet FORM now trades at $136.12, above every sale price in the series and just below analyst consensus.