FormFactor Stock Up 22% and Drawing a $35 Million New Stake as The Firm Beats Q3 Estimates | The Motley Fool

New York City-based Shannon River Fund Management initiated a new position in FormFactor ( FORM +0.01%), adding 968,161 shares worth about $35.26 million as of a November 13 SEC filing. What Happened According to a November 13 SEC filing , Shannon River Fund Management LLC disclosed a new stake in FormFactor , acquiring 968,161 shares. The position, valued at $35.26 million as of September 30, accounted for 5.68% of the fund’s $621.17 million in reportable U.S. equity holdings. The fund reported a total of 20 positions after the filing. What Else to Know This new position now comprises 5.68% of the fund's reportable assets under management. Top five holdings after the filing: NASDAQ:PEGA: $79.59 million (12.8% of AUM) NASDAQ:TSEM: $69.56 million (11.2% of AUM) NASDAQ:IDCC: $61.70 million (9.9% of AUM) NASDAQ:WIX: $58.63 million (9.4% of AUM) NASDAQ:FLEX: $49.24 million (7.9% of AUM) As of Wednesday, shares were priced at $58.17, up 22% over the past year and solidly outperforming the S&P 500, which is up about 15% in the same period. Company Overview Metric Value Revenue (TTM) $759.31 million Net Income (TTM) $40.84 million Price (as of Wednesday) $58.17 One-Year Price Change 22% Company Snapshot FormFactor, Inc. provides probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems, primarily serving the semiconductor industry. The company generates revenue by designing, manufacturing, and selling advanced testing and measurement solutions used throughout the semiconductor manufacturing and research lifecycle. Primary customers include semiconductor integrated device manufacturers, foundries, fabless semiconductor companies, research institutions, and universities worldwide. FormFactor, Inc. is a leading supplier of test and measurement solutions for the semiconductor sector, with a diversified product portfolio addressing both production and R&D needs. Its strategy centers on technological innovation and global reach, enabling it to serve a broad spectrum of customers from chip manufacturers to scientific institutions. The company's competitive edge lies in its specialized expertise and ability to support complex semiconductor testing requirements across multiple geographies. Foolish Take FormFactor doesn’t live in the headline-grabbing AI chip race, but it supplies the picks and shovels that tell chipmakers whether those increasingly complex designs actually work. That positioning showed up clearly in the latest quarter . Revenue reached $202.7 million, while gross margin expanded to 39.8% GAAP and 41.0% on a non-GAAP basis, up roughly 250 basis points sequentially. Free cash flow rebounded to $19.7 million after a weak second quarter, and management guided to another step up in revenue, earnings, and margins in Q4. Notably, DRAM probe cards posted double-digit sequential growth, hitting a record driven by high-bandwidth memory demand, while the systems segment gained momentum toward initial volume production in co-packaged optics. That mix helps explain why this position landed as a mid-single-digit allocation rather than a token trade. In context, this fund already holds other IP- and semiconductor-adjacent names, but ultimately, FormFactor adds exposure to profitability improvement rather than pure cycle recovery. Glossary Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund...

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