CEVA (NASDAQ:CEVA) Shares Gap Down Following Weak Earnings

CEVA, Inc. (NASDAQ:CEVA - Get Free Report) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $26.48, but opened at $22.52. CEVA shares last traded at $21.20, with a volume of 160,162 shares trading hands.

The semiconductor company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.07 by ($0.01). The firm had revenue of $24.25 million during the quarter, compared to the consensus estimate of $26.55 million. CEVA had a negative net margin of 8.22% and a negative return on equity of 2.48%. The business's quarterly revenue was up 9.8% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.05) earnings per share.

Wall Street Analyst Weigh In

CEVA has been the topic of a number of analyst reports. Rosenblatt Securities restated a "buy" rating and issued a $45.00 target price on shares of CEVA in a report on Wednesday, April 23rd. StockNews.com downgraded shares of CEVA from a "buy" rating to a "hold" rating in a report on Tuesday, April 1st. Finally, Barclays raised their price target on shares of CEVA from $34.00 to $40.00 and gave the stock an "overweight" rating in a research note on Friday, February 14th. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $38.60.

Insiders Place Their Bets

In related news, Director Louis Silver sold 4,520 shares of CEVA stock in a transaction on Friday, March 14th. The stock was sold at an average price of $30.98, for a total transaction of $140,029.60. Following the completion of the sale, the director now owns 47,038 shares of the company's stock, valued at approximately $1,457,237.24. This trade represents a 8.77 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.40% of the stock is owned by corporate insiders.

Institutional Trading of CEVA

Hedge funds have recently made changes to their positions in the stock. Harvest Fund Management Co. Ltd purchased a new position in shares of CEVA during the 4th quarter valued at about $40,000. Meeder Asset Management Inc. purchased a new stake in CEVA during the 4th quarter valued at $46,000. GAMMA Investing LLC raised its stake in shares of CEVA by 63.3% during the fourth quarter. GAMMA Investing LLC now owns 2,379 shares of the semiconductor company's stock valued at $75,000 after acquiring an additional 922 shares during the last quarter. KLP Kapitalforvaltning AS purchased a new position in CEVA during the 4th quarter valued at about $129,000. Finally, Cornerstone Investment Partners LLC purchased a new position in shares of CEVA during the fourth quarter valued at approximately $215,000. 85.37% of the stock is owned by institutional investors.

CEVA Stock Down 20.4 %

The business has a fifty day moving average of $26.79 and a 200 day moving average of $29.42. The company has a market cap of $504.02 million, a P/E ratio of -57.46 and a beta of 1.37.

CEVA Company Profile

CEVA, Inc provides silicon and software IP solutions to semiconductor and original equipment manufacturer (OEM) companies worldwide. Its 5G mobile and infrastructure products include Ceva-XC vector digital signal processors (DSPs) for 5G handsets, 5G RAN, and general-purpose baseband processing; PentaG-RAN, an open ran platform for base station and radio; and PentaG2 - 5G NR modem platform for UE, as well as for non-handset 5G vertical markets, such as fixed wireless access, industry 4.0, robotics, and AR/VR devices.

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