Ceva (NASDAQ:CEVA) Shares Down 5.4% After Analyst Downgrade

Key Points

• Ceva shares fell 5.4% after Oppenheimer cut its price target from $42 to $38, while maintaining an “outperform” rating. The stock traded near $30.21, below the analyst consensus target of $41.60.
• Ceva’s second-quarter results exceeded expectations, with adjusted EPS of $0.08 versus $0.07 expected and revenue of $29.03 million, up 13% year over year. Growth was supported by licensing revenue tied to artificial intelligence and connectivity demand.
• Analyst sentiment remains broadly positive, with nine Buy ratings and a consensus “Moderate Buy,” but the company remains unprofitable and is expected to post a full-year loss, creating a key risk for investors.

Shares of Ceva, Inc. (NASDAQ:CEVA - Get Free Report) were down 5.4% during trading on Tuesday after Oppenheimer lowered their price target on the stock from $42.00 to $38.00. Oppenheimer currently has an outperform rating on the stock. Ceva traded as low as $30.51 and last traded at $30.2060. Approximately 394,692 shares were traded during trading, a decline of 38% from the average session volume of 632,098 shares. The stock had previously closed at $31.92.

A number of other equities analysts also recently commented on CEVA. Needham & Company LLC dropped their target price on shares of Ceva from $55.00 to $43.00 and set a "buy" rating on the stock in a research note on Monday. Roth Capital reaffirmed a "buy" rating and set a $40.00 price target on shares of Ceva in a research note on Monday, May 11th. Stifel Nicolaus boosted their price target on Ceva from $42.00 to $50.00 and gave the company a "buy" rating in a report on Friday, July 10th. UBS Group increased their price objective on Ceva from $42.00 to $48.00 and gave the stock a "buy" rating in a research note on Tuesday, May 12th. Finally, Rosenblatt Securities raised their price objective on Ceva from $45.00 to $49.00 and gave the stock a "buy" rating in a report on Tuesday. Nine equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $41.60.

More Ceva News

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Ceva reported second-quarter adjusted earnings of $0.08 per share, exceeding the $0.07 consensus estimate, while revenue of $29.03 million topped expectations of $28.19 million. Revenue increased 13% year over year, supported by strong licensing and related revenue tied to artificial intelligence and connectivity demand. Ceva Second Quarter 2026 Financial Results
• Positive Sentiment: Rosenblatt raised its price target from $45 to $49 and kept a “buy” rating. Needham also maintained a “buy” rating, while its reduced $43 target still implies considerable potential upside from recent trading levels. Analyst Forecast Revisions Following Q2 Results
• Positive Sentiment: Recent insider activity has been supportive: Ceva’s chief executive, chief financial officer and another insider reportedly purchased shares during the past six months. Institutional positioning was mixed, with State Street and BlackRock among investors increasing holdings. Ceva Insider and Institutional Activity
• Neutral Sentiment: Reports about a cyberattack affecting CEVA Logistics, a separate logistics company involved in shipping Steam hardware, do not appear related to Ceva, Inc.’s semiconductor intellectual-property business or its NASDAQ-listed stock.
• Negative Sentiment: Oppenheimer lowered its price target from $42 to $38, although it retained an “outperform” rating. The reductions from Oppenheimer and Needham suggest analysts are tempering expectations after the earnings release, despite maintaining favorable ratings. Analyst Forecast Revisions Following Q2 Results
• Negative Sentiment: Ceva remains unprofitable, reporting a negative net margin of 10.47% and negative return on equity. The company is expected to post a loss for the full fiscal year, which may be weighing on the stock despite the quarterly earnings and revenue beats.

Institutional Trading of Ceva

A number of hedge funds have recently bought and sold shares of CEVA. Hantz Financial Services Inc. increased its holdings in shares of Ceva by 77.6% in the 4th quarter. Hantz Financial Services Inc. now owns 1,446 shares of the semiconductor company's stock valued at $31,000 after acquiring an additional 632 shares during the period. Global Retirement Partners LLC bought a new stake in Ceva during the second quarter valued at about $49,000. Tower Research Capital LLC TRC boosted its position in Ceva by 422.2% during the second quarter. Tower Research Capital LLC TRC now owns 2,731 shares of the semiconductor company's stock valued at $60,000 after purchasing an additional 2,208 shares in the last quarter. Russell Investments Group Ltd. grew its stake in Ceva by 771.8% in the third quarter. Russell Investments Group Ltd. now owns 2,380 shares of the semiconductor company's stock valued at $63,000 after purchasing an additional 2,107 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Ceva by 47.4% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,758 shares of the semiconductor company's stock valued at $145,000 after purchasing an additional 2,172 shares during the last quarter. Hedge funds and other institutional investors own 85.37% of the company's stock.

Ceva Price Performance

The firm has a market capitalization of $841.54 million, a P/E ratio of -67.06 and a beta of 1.99. The stock's fifty day simple moving average is $41.78 and its 200 day simple moving average is $30.88.

Ceva (NASDAQ:CEVA - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The semiconductor company reported $0.08 earnings per share for the quarter, beating analysts' consensus estimates of $0.07 by $0.01. Ceva had a negative net margin of 10.47% and a negative return on equity of 3.42%. The business had revenue of $29.03 million for the quarter, compared to analysts' expectations of $28.19 million. During the same period last year, the business earned $0.07 EPS. The company's revenue was up 13.0% compared to the same quarter last year. As a group, sell-side analysts forecast that Ceva, Inc. will post -0.21 EPS for the current fiscal year.

Ceva Company Profile

Ceva, Inc NASDAQ: CEVA is a leading licensor of signal processing IP cores and platforms that enable intelligent, connected devices. The company designs a broad portfolio of digital signal processing (DSP) and AI processors, software development toolkits and reference frameworks for applications ranging from 5G wireless communications and Bluetooth connectivity to audio, computer vision, sensor fusion and edge AI. Its solutions target a variety of end markets including smartphones, automotive, IoT devices, smart home, industrial automation and wearable electronics.

Founded in 1999 as a spin-off from DSP Group, Ceva has built its reputation on delivering modular, power-efficient IP that can be customized to meet stringent performance, area and power requirements.

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