Ceva (NASDAQ:CEVA) Stock Price Down 7.9% - Here's Why

Key Points

• Ceva shares fell 7.9% to about $30.13 in midday trading, with volume roughly 76% below the stock’s average daily level.
• Analyst opinions remain mixed, but the consensus rating is “Moderate Buy” from 12 analysts, with an average price target of $40.60.
• Ceva recently exceeded quarterly earnings and revenue expectations, reporting $0.08 EPS and $29.03 million in revenue, while revenue rose 13% year over year. Despite the stronger results, the company remains unprofitable, with a negative net margin and analysts expecting a full-year loss.

Ceva, Inc. (NASDAQ:CEVA - Get Free Report) shares fell 7.9% during mid-day trading on Tuesday . The stock traded as low as $30.16 and last traded at $30.1260. 153,359 shares changed hands during trading, a decline of 76% from the average daily volume of 647,009 shares. The stock had previously closed at $32.71.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. JPMorgan Chase & Co. started coverage on shares of Ceva in a research report on Friday, May 8th. They issued a "neutral" rating and a $30.00 price objective for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Ceva in a research note on Monday, July 6th. Wall Street Zen raised shares of Ceva from a "hold" rating to a "buy" rating in a report on Saturday. Stifel Nicolaus lifted their price objective on shares of Ceva from $42.00 to $50.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Finally, TD Cowen dropped their price objective on shares of Ceva from $55.00 to $45.00 and set a "buy" rating on the stock in a report on Tuesday, August 11th. Nine research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $40.60.

Ceva Stock Down 9.2%

The stock has a market capitalization of $836.48 million, a PE ratio of -74.49 and a beta of 1.99. The firm has a 50 day moving average price of $40.16 and a 200-day moving average price of $31.18.

Ceva (NASDAQ:CEVA - Get Free Report) last released its earnings results on Monday, August 10th. The semiconductor company reported $0.08 EPS for the quarter, topping analysts' consensus estimates of $0.07 by $0.01. The firm had revenue of $29.03 million during the quarter, compared to the consensus estimate of $28.19 million. Ceva had a negative return on equity of 3.15% and a negative net margin of 9.48%.The company's revenue was up 13.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.07 earnings per share. Equities analysts expect that Ceva, Inc. will post -0.2 earnings per share for the current fiscal year.

Institutional Trading of Ceva

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Hantz Financial Services Inc. raised its holdings in shares of Ceva by 77.6% during the fourth quarter. Hantz Financial Services Inc. now owns 1,446 shares of the semiconductor company's stock worth $31,000 after purchasing an additional 632 shares during the last quarter. Global Retirement Partners LLC purchased a new stake in Ceva in the second quarter valued at $49,000. Tower Research Capital LLC TRC grew its position in Ceva by 422.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,731 shares of the semiconductor company's stock worth $60,000 after purchasing an additional 2,208 shares during the period. Russell Investments Group Ltd. grew its position in Ceva by 771.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,380 shares of the semiconductor company's stock worth $63,000 after purchasing an additional 2,107 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Ceva by 47.4% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,758 shares of the semiconductor company's stock valued at $145,000 after buying an additional 2,172 shares during the last quarter. Institutional investors and hedge funds own 85.37% of the company's stock.

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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