GET DAILY SIGNALSWhy 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 Stochastic Oscillator dives oversold zone
The Stochastic Oscillator for FORM moved into oversold territory on November 02, 2026. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where FORM's RSI Indicator exited the oversold zone, 19 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 76%.
Following a +9.10% 3-day Advance, the price is estimated to grow further. Considering data from situations where FORM advanced for three days, in 245 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
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 Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FORM as a result. In 63 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 69%.
The Moving Average Convergence Divergence Histogram (MACD) for FORM turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 36 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 72%.
FORM moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FORM crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 65%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
The Aroon Indicator for FORM entered a downward trend on November 02, 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 Seasonality Score of 27 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 59 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. FORM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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.
The Tickeron Valuation Rating of 80 (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 (6.137) is normal, around the industry mean (6.211). P/E Ratio (58.986) is within average values for comparable stocks, (81.436). FORM's Projected Growth (PEG Ratio) (1.500) is slightly higher than the industry average of (0.801). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. P/S Ratio (9.200) is also within normal values, averaging (27.897).
The Tickeron PE Growth Rating for this company is 87 (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a manufacturer of semiconductor wafer probe card products
Industry ElectronicProductionEquipment
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