FormFactor Upgraded to Buy After Earnings Slide

Freedom Capital Markets lifted FormFactor to Buy from Hold on Monday, setting a $140 price target. That implies 60% upside from the $87.53 close on October 30, a striking call given the stock has fallen 36% over the past month.

Steve Silver at Freedom Capital Markets is the analyst behind the upgrade. He had maintained a Hold at $140 through October before moving to Buy after earnings. TD Cowen's Krish Sankar, who kept a Hold, did raise his target from $100 to $110 after the October 28 print. Evercore ISI's Vedvati Shrotre trimmed her Outperform target to $140 from $150 but stayed positive.

The consensus mean price target across the analyst group stands at $152.22.

What the Earnings Report Did

FormFactor reported on October 28 and the stock fell 8.8% the following session. It has lost 11.1% over the past week. That compares poorly with the median of its closest peers: TER fell 11.2% over the same period, while ENTG gained 14.8%.

The EPS momentum factor score sits at the 91st percentile over the past 30 days, suggesting estimate revisions had been running strongly into the print.

Short Sellers Step Back

Short interest fell a further 21% in the week to October 30, reaching 3.17% of free float. That extends the unwind noted in our previous article, published October 28, when short interest had already dropped to 3.3% of float. The short position now stands at roughly 2.45 million shares, down from 3.1 to 3.2 million through most of September and October.

Availability in the lending market remains exceptionally loose at 6,520% of short interest. There are roughly 65 shares available to borrow for every one currently lent out. Cost to borrow is 0.43%, categorised as low.

The ORTEX short score has eased from 34.8 on October 20 to 32.0 on October 30, consistent with the short-side retreat.

CEO Sales Were Planned

Insider data from EDGAR Form 4 filings shows CEO Mike Slessor sold shares on three separate occasions in the 90-day window through October 14, with a combined net value of approximately $5.5 million sold. All transactions were filed under a pre-arranged 10b5-1 trading plan, which reduces their signal value as an indicator of executive conviction.

Data Summary

• Freedom Capital Markets upgrade: Hold to Buy, $140 target
• Consensus mean price target: $152.22
• Stock close October 30: $87.53, down 36% over one month
• Short interest: 3.17% of free float, down 21% over one week
• Borrow availability: 6,520% of short interest
• Cost to borrow: 0.43%
• ORTEX short score: 32.0, down from 34.8 ten days ago
• Next earnings: February 3, 2027