A Contrarian Bet: Institutional Investors Back FormFactor Despite Headwinds

A curious divergence is unfolding around FormFactor shares, presenting investors with a compelling puzzle. While recent quarterly results fell short of expectations and prompted analyst downgrades, major institutional players have been significantly increasing their stakes. This apparent contradiction points to deeper strategic shifts within the semiconductor testing specialist and evolving dynamics across the chip market.

In a notable show of confidence, several prominent institutional investors expanded their positions in FormFactor during a period of market uncertainty. Financial heavyweights including Bank of America, Bank of New York Mellon, and Massachusetts Financial Services were among those acquiring shares. This activity has pushed institutional ownership to exceed 98% of all outstanding shares, signaling substantial belief in the company’s long-term prospects despite present challenges.

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