FormFactor CEO’s 2026 Insider Sales: What Investors Must Know About the Stock’s Future

Insider Selling on a Rising Stock: What FormFactor Investors Should Watch

FormFactor Inc. (NASDAQ: FFCO) has once again recorded a significant block of shares sold by its chief executive officer, Mike Slessor, under a pre‑established Rule 10b5‑1 trading plan. On 15 January 2026, Slessor liquidated 6 976 shares at an average price of $76.43, followed by an additional 6 112 shares at $77.24 on the same day. Both transactions were executed at prices comfortably above the market level of $75.28, and occurred immediately after the share price reached a 52‑week high of $76.19.

The timing of the sales—coincident with a 34.48 % rally from the beginning of the month and an overall year‑to‑date gain of 73 %—has raised questions among investors regarding whether the CEO is simply exercising a disciplined liquidity strategy or whether there are underlying concerns about FormFactor’s near‑term prospects.

A Pattern of Strategic Liquidations

An examination of Slessor’s trading history over the past 12 months reveals a consistent pattern of capital‑raising activities that are largely synchronized with price ascents. In December 2025, the CEO sold 5 606 shares at $56.19 and 2 063 shares at $56.82; in November, he divested 9 391 shares at prices ranging from $52.25 to $54.22. These sales coincided with periods of heightened volatility—most often when the share price was above $70—suggesting a disciplined approach to cashing in gains.

Conversely, the CEO has purchased shares in August and May 2025, typically at lower valuation levels. These acquisitions indicate a willingness to reinvest when the stock appears undervalued. The recent January sales therefore continue a long‑term pattern that balances liquidity needs with a sustained, long‑term investment stance.

Implications for Investors and the Company’s Future

While insider selling under a Rule 10b5‑1 plan does not, by itself, constitute a red flag, the proximity of the sales to a 52‑week peak can be interpreted as a precautionary hedge against a potential pullback. Analysts are therefore monitoring whether this pattern of sales will persist as FormFactor’s product pipeline—particularly its AI‑enabled wafer probe cards—moves toward commercial deployment.

If the company delivers on its growth targets, the share price may continue to rise, rendering the CEO’s sales largely inconsequential. However, should product delays or margin pressures emerge, the insider liquidity could presage a more significant sell‑off, prompting investors to reassess the company’s valuation.

Management Profile and Trading Discipline

Mike Slessor is a seasoned executive who has guided FormFactor through rapid scaling and product innovation. His insider trading record demonstrates a consistent use of Rule 10b5‑1 plans to manage personal liquidity while avoiding market timing. Over the past two years, he has sold approximately 140 000 shares at a median price of $56–$75, generating cash that likely funds both personal and company‑wide initiatives. His purchases, totaling around 70 000 shares, occur at lower valuations, reflecting a long‑term commitment to the firm’s vision.

The balance between sales and purchases suggests that Slessor views his holdings as an asset that can be managed strategically rather than as a speculative position.

Bottom Line for Investors

The CEO’s recent sales, while noteworthy, align with a disciplined, pre‑set strategy that has been in place since August 2025. They do not, on their own, signal a looming crisis. Investors should focus on FormFactor’s fundamentals: a robust product pipeline targeting AI‑driven semiconductor manufacturing, a strong market position, and a stock that has recovered sharply from a 2025 floor. As the company navigates upcoming product milestones, insider activity will remain a barometer of management confidence, but the current pattern suggests a balanced approach to personal liquidity rather than a rash divestiture.