What Happened:
Shares of semiconductor testing company FormFactor (NASDAQ:FORM) fell 8.95% in the morning session after analyst Atif Malik of Citigroup downgraded the stock's rating from Buy to Neutral (Hold). The analyst noted that the prospects for memory probe demand could be dimmed by the persistent challenges in the Chinese domestic memory market, which would curb any increase in multiples.
What is the market telling us:
FormFactor's shares are somewhat volatile and over the last year have had 23 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
FormFactor is up 39.7% since the beginning of the year, but at $30.65 per share it is still trading 28.3% below its 52-week high of $42.73 from April 2022. Investors who bought $1,000 worth of FormFactor's shares 5 years ago would now be looking at an investment worth $2,252.
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