What Do CEO Share Sales Reveal About FormFactor's (FORM) Conviction in Its AI Test Opportunity?

• Earlier this week, FormFactor announced that CEO Mike Slessor sold 39,606 shares, while continuing to hold 485,995 shares in the company, against a backdrop of strong sector interest in its semiconductor test and measurement technologies.
• The absence of insider share purchases over the past year, alongside multiple insider sales, offers investors an additional lens on internal sentiment and capital allocation decisions.
• We’ll now examine how the CEO’s recent share sale, alongside sector-wide AI enthusiasm, may influence FormFactor’s existing investment narrative.

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FormFactor Investment Narrative Recap

To own FormFactor, you need to believe its probe cards and test systems remain central to increasingly complex AI and high bandwidth memory workflows, despite margin pressure and customer concentration risk. The CEO’s recent share sale, amid a sector rally, does not appear to materially change the key short term focus on balancing higher test demand with profitability and exposure to a small set of major semiconductor customers.

The recent share repurchase activity under the May 2025 buyback program is especially relevant here, as it sits alongside insider selling and offers another data point on how capital is being deployed. When viewed together with sector wide AI enthusiasm, these moves frame a tension between supporting shareholder returns and the ongoing need to invest in capacity and technology that could influence future margins and revenue stability.

Yet investors should also weigh the risk that rising tariffs and geopolitical frictions could quietly eat into margins and profitability over time...

Read the full narrative on FormFactor (it's free!)

FormFactor's narrative projects $984.3 million revenue and $97.0 million earnings by 2028. This requires 8.8% yearly revenue growth and an earnings increase of about $53 million from $43.9 million today.

Uncover how FormFactor's forecasts yield a $56.88 fair value, a 9% downside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$13 to US$78 per share, highlighting how widely individual views can differ. Against that diversity, concerns about persistent gross margin pressure and input costs invite you to weigh how different scenarios for profitability might shape FormFactor’s longer term performance.

Explore 6 other fair value estimates on FormFactor - why the stock might be worth as much as 24% more than the current price!

Build Your Own FormFactor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FormFactor research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free FormFactor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FormFactor's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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