Needham analyst Charles Shi has maintained their neutral stance on FORM stock, giving a Hold rating on July 29.
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Charles Shi has given his Hold rating due to a combination of factors affecting Formfactor’s performance. The company reported a mixed quarter where strong revenue figures were overshadowed by weaker-than-expected margins. Additionally, the guidance for the next quarter’s earnings per share indicates a significant shortfall, primarily due to changes in tax regulations.
Despite these challenges, Formfactor has shown promising growth in the High Bandwidth Memory (HBM) sector, particularly with its ramp-up of HBM probe cards at Micron. This growth in HBM, along with a resurgence in traditional DRAM, is seen as a positive offset to a slight decline in the foundry and logic probe card segment. The long-term potential driven by AI advancements adds a constructive outlook, yet the current profitability issues warrant a cautious Hold stance.
In another report released on July 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $38.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FORM in relation to earlier this year.