Ceva (NASDAQ:CEVA) Trading 9.2% Higher on Earnings Beat

Key Points

• Ceva, Inc. (NASDAQ:CEVA) experienced a 9.2% increase in stock price after reporting earnings of $0.07 per share, surpassing analysts' expectations of $0.05.
• Despite the beat on earnings, Ceva's revenue of $25.68 million decreased by 9.5% compared to the same quarter last year, indicating ongoing challenges.
• Wall Street analysts have mixed views, with price targets ranging from $30.00 to $40.00, reflecting a consensus rating of "Moderate Buy."

Ceva, Inc. (NASDAQ:CEVA - Get Free Report)'s stock price shot up 9.2% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $23.19 and last traded at $23.30. 100,094 shares changed hands during mid-day trading, a decline of 64% from the average session volume of 280,367 shares. The stock had previously closed at $21.33.

The semiconductor company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. The business had revenue of $25.68 million during the quarter, compared to the consensus estimate of $25.33 million. Ceva had a negative return on equity of 3.04% and a negative net margin of 9.48%. Ceva's quarterly revenue was down 9.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.17 earnings per share.

Analyst Ratings Changes

Several brokerages have recently issued reports on CEVA. Rosenblatt Securities restated a "buy" rating and set a $40.00 price target on shares of Ceva in a research note on Thursday. Barclays reduced their price target on shares of Ceva from $40.00 to $30.00 and set an "overweight" rating on the stock in a research report on Thursday, May 8th. Finally, Oppenheimer cut their price target on shares of Ceva from $40.00 to $33.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $35.60.

Institutional Investors Weigh In On Ceva

A number of hedge funds have recently made changes to their positions in CEVA. Vanguard Group Inc. grew its holdings in Ceva by 13.0% during the 1st quarter. Vanguard Group Inc. now owns 2,446,574 shares of the semiconductor company's stock valued at $62,657,000 after purchasing an additional 281,274 shares during the last quarter. Intrinsic Edge Capital Management LLC acquired a new stake in shares of Ceva during the second quarter worth $4,833,000. Westerly Capital Management LLC purchased a new position in shares of Ceva during the second quarter worth $3,956,000. Disciplined Growth Investors Inc. MN increased its holdings in Ceva by 40.6% in the second quarter. Disciplined Growth Investors Inc. MN now owns 619,817 shares of the semiconductor company's stock valued at $13,624,000 after buying an additional 179,098 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC grew its position in shares of Ceva by 199.6% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 254,677 shares of the semiconductor company's stock valued at $8,035,000 after purchasing an additional 169,677 shares during the period. 85.37% of the stock is currently owned by hedge funds and other institutional investors.

Ceva Trading Down 3.3%

The company has a market cap of $556.64 million, a price-to-earnings ratio of -55.50 and a beta of 1.25. The stock's fifty day simple moving average is $22.20 and its 200 day simple moving average is $25.13.

About Ceva

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.