FormFactor Director Sheri Rhodes Sells $793,531 in Company Stock
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
formfactorinsider-trading
Fazen Markets Editorial Desk
Collective editorial team · methodology
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A director of semiconductor test and measurement supplier FormFactor, Inc., Sheri Rhodes, executed a sale of company shares valued at $793,531. The transaction was reported on June 4, 2026. This disposal represents one of the more significant insider sell transactions at FormFactor this quarter, occurring as the broader chip equipment sector faces headwinds from fluctuating demand cycles. The sale was conducted at an average price point that reflects recent trading levels for the stock.
Insider sales are monitored for signals about executive confidence, though they can be motivated by personal financial planning. This transaction occurs against a backdrop of sector-specific pressures. The Philadelphia Semiconductor Index (SOX) has experienced heightened volatility in the second quarter of 2026, declining approximately 5% from recent highs. Semiconductor capital equipment firms like FormFactor are navigating a post-inventory correction phase, with customers cautiously managing capital expenditure.
The sale by Director Rhodes is her first disclosed transaction of this magnitude in 2026. A comparable transaction occurred on February 15, 2026, when another FormFactor officer sold shares worth approximately $450,000. The current sale is 76% larger in dollar value than that February transaction. The trigger for monitoring this activity is its timing relative to the company's upcoming earnings quiet period and prevailing macroeconomic uncertainty surrounding interest rates.
The sale involved the disposal of 19,238 shares at a weighted average price of $41.24 per share. FormFactor's stock closed the trading session on June 4 at $41.50, indicating the sale was executed near the day's market price. Year-to-date, FORRM shares are down 8%, underperforming the SOX index's 3% decline over the same period. The company's market capitalization stands at approximately $3.3 billion.
Following the transaction, Director Rhodes' direct holdings in FormFactor were reduced, though exact post-transaction ownership details are filed separately with the SEC. The volume of shares sold represented a notable portion of the stock's average daily trading volume, which is around 450,000 shares. Insider selling volume at FormFactor has exceeded buying volume by a ratio of 5-to-1 over the preceding 90 days.
| Metric | Value |
|---|---|
| Sale Value | $793,531 |
| Shares Sold | 19,238 |
| Average Price | $41.24 |
| FORRM YTD Performance | -8% |
The sale may contribute to near-term sentiment pressure on FORRM shares, particularly among momentum traders who track insider activity. The semiconductor equipment sector is highly cyclical, and insider selling can be interpreted as a cautious stance on near-term order visibility. Peer companies like Teradyne (TER) and Advantest Corporation (ATEYY) could see correlated sentiment shifts if investors view the sale as a sector-wide signal rather than an isolated event.
A key counter-argument is that this sale was a pre-planned transaction under a 10b5-1 rule, designed to avoid allegations of trading on insider information. Such plans are common and do not necessarily reflect a negative outlook. The market impact may be muted if the transaction is confirmed to be part of a scheduled diversification plan. Positioning data suggests short interest in FORRM has crept up slightly in recent weeks, indicating some investors are hedging against further downside.
The primary catalyst for FormFactor will be its second-quarter earnings report, expected in late July 2026. Investors will scrutinize management's commentary on demand for wafer probe cards and analytical probes, key revenue drivers. Any guidance revision will significantly impact the stock's trajectory. The next Federal Open Market Committee meeting on June 18, 2026, is also critical, as interest rate decisions influence capital expenditure budgets for FormFactor's customers.
Technical levels to monitor for FORRM include a support zone near $39.50, which has held twice in the past quarter. A breach of this level could signal a move toward the 52-week low of $35.20. Resistance is firmly established at the 50-day moving average, currently hovering near $44.00. A sustained break above this average would be necessary to shift the short-term bearish technical structure.
A 10b5-1 plan is a predefined set of instructions for trading a company's stock established by an insider when they are not in possession of material non-public information. It allows insiders to schedule stock sales in advance to avoid accusations of insider trading. The plan specifies amounts, prices, and dates for transactions automatically. Many institutional investors view sales under these plans as less indicative of an insider's outlook than discretionary trades.
Insider selling has been the dominant trend at FormFactor over the past three years, which is typical for a mature tech company where executives diversify assets. The $793,531 sale is substantial but not unprecedented. In November 2025, a different director sold over $1.2 million in stock. The ratio of insider selling to buying at FormFactor has consistently been high, often exceeding the industry average for semiconductor equipment providers.
Retail investors should treat insider selling as a single data point, not a definitive sell signal. Executives sell stock for many reasons, including tax obligations, estate planning, and portfolio diversification. It is more significant when multiple insiders sell large portions of their holdings simultaneously outside of a pre-arranged plan. Retail investors should prioritize fundamental analysis of company earnings, competitive position, and industry trends over isolated insider transactions. For more on interpreting market signals, see our guide on equity analysis at Fazen Markets.
The sale reflects routine insider diversification amid a challenging period for semiconductor equipment stocks.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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