FormFactor Insiders Sold $6.33M Into Four EPS Beats
FormFactor posted its fourth consecutive EPS beat in Q2 2026, with $0.82 actual versus a $0.61 consensus, while five insiders sold $6.33 million in open-market shares over 90 days with no purchases. T
CEO, Four Directors Exit FormFactor; Shares Slide 10%
NEW YORK, August 18 —
FormFactor, Inc. (FORM) has beaten analyst EPS estimates in each of the past four quarters by 27% to 34%; over that same stretch, five insiders collectively sold $6.33 million in open-market shares without a single purchase. On August 18, the pattern caught up with the price.
- Q2 2026 EPS $0.82 actual vs. $0.61 consensus, a 34.4% beat, the fourth consecutive positive surprise.
- CEO Mike Slessor sold 16,002 shares on Aug. 14 (~$2.1M) and 4,735 on July 15 (~$560K), per Form 4 filings.
Four Beats, Five Exits
FormFactor makes probe cards that test semiconductor chips, GPUs, CPUs, DRAM, and NAND, at the center of AI hardware, putting it in the semiconductor equipment supply chain during a period of structural demand growth. Revenue grew 31.9% to $0.90 billion TTM, free cash flow reached $115 million, and the balance sheet holds $350 million in cash against $30 million in total debt. Those four consecutive quarters, reported most recently in FormFactor's Q2 2026 earnings filing, each delivered EPS well above consensus, by 27.3%, 31.2%, 32.2%, and 34.4% respectively. Five insiders sold into those gains.
Selling Into Every Beat
CEO Mike Slessor sold 16,002 shares in six open-market transactions on August 14, collecting approximately $2.1 million at prices between $128.72 and $133.33, per Form 4 filings. A month earlier, he sold 4,735 shares for approximately $560,000 on July 15. The broader 90-day window brought in four directors, producing $6.33 million in total open-market sales and zero purchases across five insiders. At 35.8x forward earnings, FormFactor's valuation prices in precisely the beat-and-raise cadence that its own executives appear unwilling to hold through.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| FORM | $9.7B | 35.8x | +383.9% |
| ONTO | $19.3B | 27.1x | +226.5% |
| UCTT | $3.7B | 13.9x | +281.6% |
| ENTG | $23.0B | 30.0x | +102.7% |
| DIOD | $4.6B | 16.9x | +102.8% |
| MTSI | $22.4B | 34.5x | +170.7% |
If the Sales Are Planned, the Thesis Survives
The key unknown is whether Slessor's sales, spread across at least two months at ascending price points, operate under a pre-filed 10b5-1 plan, which would indicate routine diversification rather than market-timing judgment. The specific number to watch next quarter is gross margin, currently 46.2%, which in semiconductor equipment cycles tends to compress before revenue does. Run the free FormFactor, Inc. deep-dive →
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Frequently Asked Questions
Why did FormFactor stock drop on August 18?
FormFactor shares fell 10% on August 18 after five insiders collectively sold $6.33 million in open-market shares with no purchases over a 90-day window. The selling pattern emerged against a backdrop of four consecutive EPS beats, including a 34.4% beat in Q2 2026. Analyst consensus price target remained at $138.625, approximately 11.5% above the post-drop price of $124.28.
How much did FormFactor CEO Mike Slessor sell?
CEO Mike Slessor sold 16,002 shares on August 14 for approximately $2.1 million at prices between $128.72 and $133.33, per Form 4 filings. He also sold 4,735 shares on July 15 for approximately $560,000. Total open-market sales across five insiders in the 90-day window reached $6.33 million with zero purchases.
Did FormFactor beat earnings estimates in Q2 2026?
FormFactor reported Q2 2026 EPS of $0.82 against a $0.61 consensus, a 34.4% beat. That was the fourth consecutive positive surprise, with prior beats of 27.3%, 31.2%, and 32.2% respectively. Revenue grew 31.9% to $0.90 billion on a trailing twelve-month basis.
What is a 10b5-1 plan and why does it matter here?
A 10b5-1 plan is a pre-filed schedule that allows executives to sell shares at set intervals, indicating routine diversification rather than market-timing judgment. Whether CEO Slessor's sales, spread across at least two months at ascending price points, operate under such a plan is identified in the article as the key unknown. If confirmed, the analyst consensus of $138.625 and the AI probe-card demand story remain intact.
What metric should FormFactor investors watch next quarter?
The article identifies gross margin, currently 46.2%, as the specific number to watch. In semiconductor equipment cycles, gross margin tends to compress before revenue does. FormFactor trades at 35.8x forward earnings, a multiple the article notes prices in precisely the beat-and-raise cadence the company has delivered across the past four quarters.
FormFactor shares fell 10% on August 18 — but the trigger is broader than a single CEO trade. Five insiders, the CEO and four directors, collectively sold $6.33 million in open-market shares over the past 90 days without a single purchase, even as an institutional manager bought 58,321 shares and the company posted its fourth consecutive analyst estimate beat.