Why Is FormFactor, Inc. (FORM) Stock Down -12.04% Today?
Key Takeaways
- FORM shares plunged 12.04% intraday Tuesday, falling $16.64 to $121.52 from Monday's close of $138.16.
- The immediate company-specific catalyst was an SEC filing showing CEO Mike Slessor sold about $2.1 million in stock under a pre-arranged Rule 10b5-1 trading plan.
- The selling was amplified by a broad semiconductor rout, with the Philadelphia Semiconductor Index down more than 5%.
- Rising long-term Treasury yields, higher oil prices, and profit-taking in high-multiple AI-chip names pressured the sector.
- Traders are watching the stock's 50-day moving average and the next quarterly report expected in late October.
Opening Summary
FormFactor, Inc. (FORM) is a Livermore, California-based supplier of probe cards, analytical probes, probe stations, and thermal and cryogenic test systems used by semiconductor manufacturers. On Tuesday, the stock plunged during regular trading: as of 1:49 p.m. ET, shares were changing hands at $121.52, down $16.64, or 12.04%, from Monday's closing price of $138.16. The move lower reflected a combination of an insider-selling disclosure and a broad pullback across semiconductor and AI-hardware names.
Insider Selling After a Sharp Run
The company-specific trigger came from an SEC filing disclosing that CEO Mike Slessor sold 16,002 shares on Friday at an average price of $130.95, a transaction worth roughly $2.1 million. The sale was executed under a pre-arranged Rule 10b5-1 plan and reduced the chief executive's ownership by about 3.2%. While such plans are scheduled in advance, the disclosure landed after a powerful rally in FORM shares and gave investors a reason to lock in profits.
Sector-Wide Semiconductor Selloff
The drop in FORM was not an isolated move. The Philadelphia Semiconductor Index sank more than 5%, putting it on track for its steepest one-day decline since early July. Memory and AI-related chip names led the selling as investors took profits after a strong run. FORM is closely tied to high-bandwidth memory and advanced packaging test demand, so when memory and AI infrastructure trades reverse, the stock tends to move with them.
Yields, Oil and Valuation Pressure
The broader macro backdrop added to the downside. The 30-year Treasury yield traded near its highest level since 2007, while the benchmark 10-year yield held near its highest since January 2025. Higher long-term rates reduce the present value of future technology profits and raise borrowing costs, making high-multiple growth stocks especially vulnerable. Oil prices also climbed as fading optimism over a U.S.-Iran de-escalation stoked inflation concerns, further dampening risk appetite. That combination hit high-beta semiconductor names such as FORM.
Market Context and Trading Activity
Shares gapped down at the open to $129.28 and continued to slide through the session. The move pushed FORM below its 50-day moving average near $123, while the stock remained above its 200-day average near $115. Early turnover was modest relative to the 30-day average, consistent with broad sector deleveraging rather than a concentrated single-stock liquidation. The decline was larger than the chip index's drop, reflecting both the insider-selling disclosure and the stock's high beta. The stock had jumped nearly 5% on Monday, making Tuesday's reversal a swift round-trip of those gains.
What Comes Next for FORM
The next major catalyst for FORM is its quarterly earnings report, expected in late October. The company's most recent report, released in late July, beat consensus estimates on both earnings and revenue, with strong demand tied to high-bandwidth memory and advanced probe cards. Still, investor focus is likely to remain on Treasury yields, oil prices, memory-industry pricing, and any signs that AI-related capital spending is moderating. The stock's elevated valuation and semiconductor cycle exposure remain key risks, even though underlying demand trends have been robust.
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FORM's RSI Oscillator climbs out of oversold territory
The RSI Indicator for FORM moved out of oversold territory on July 30, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 31, 2026. You may want to consider a long position or call options on FORM as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FORM just turned positive on August 03, 2026. Looking at past instances where FORM's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
FORM moved above its 50-day moving average on August 12, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FORM advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
FORM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FORM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FORM entered a downward trend on August 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FORM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.709) is normal, around the industry mean (9.222). P/E Ratio (95.228) is within average values for comparable stocks, (200.795). FORM's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.670). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (12.121) is also within normal values, averaging (39.286).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a manufacturer of semiconductor wafer probe card products
Industry ElectronicProductionEquipment
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