In a recent transaction, Mike Slessor, the CEO of FormFactor Inc. (NASDAQ:FORM), a leading semiconductor company, sold a significant number of shares in the firm. The sale, which took place on June 3, 2024, involved a total of 4,000 shares of common stock, netting a total of $217,498.
The shares were sold at varying prices, with a range between $54.1702 and $54.8348. Specifically, 2,770 shares were sold at an average price of $54.1702, while the remaining 1,230 shares fetched an average price of $54.8348. Following the sales, Slessor still retains 491,581 shares of FormFactor Inc., indicating a continued vested interest in the company's performance.
It is worth noting that the sales were conducted automatically under a Rule 10b5-1 trading plan, which Slessor had previously adopted on November 20, 2023. This plan allows company insiders to set up a predetermined schedule for buying or selling stocks at a time when they are not in possession of material non-public information, thus avoiding potential accusations of insider trading.
Investors and followers of FormFactor Inc. can request detailed information about the exact number of shares sold at each price point if needed, as per the reporting person's commitment to transparency.
The reported transactions provide insights into the trading activities of FormFactor's top executives, which can be of interest to current and potential investors. As the market processes this information, FormFactor's stock may continue to be watched closely by those following the semiconductor industry.
InvestingPro Insights
Following the recent sale of shares by FormFactor Inc.'s CEO, Mike Slessor, market participants may be keen to understand the current financial health and performance metrics of the company. According to InvestingPro data, FormFactor Inc. (NASDAQ:FORM) has a market capitalization of $4.1 billion, with a high P/E ratio of 39.9. This valuation comes into sharper focus when considering the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at a significantly higher 172.71, suggesting a premium valuation relative to current earnings.
Investors might also take note of the company's revenue trends, which have seen a decrease of 7.5% over the last twelve months as of Q1 2024. Nevertheless, FormFactor has managed a gross profit margin of 39.3% in the same period, indicating a strong ability to convert sales into profit.
From a trading perspective, FormFactor's stock has experienced significant volatility. Despite a notable 9.44% drop in the past week, the company's shares have delivered a strong return of 68.76% over the past year. This might be an indicator of the company's resilience and the market's confidence in its long-term prospects.
An InvestingPro Tip that stands out in this context is that FormFactor holds more cash than debt on its balance sheet, which is often a sign of financial stability and may provide cushioning against market downturns. Additionally, six analysts have revised their earnings upwards for the upcoming period, which could suggest a positive outlook for the company's financial future.
For investors seeking to make informed decisions, there are additional InvestingPro Tips available for FormFactor Inc. at https://www.investing.com/pro/FORM. To access these valuable insights, use the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools, investors can stay ahead of market trends and make data-driven investment choices.
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