Ceva (NASDAQ:CEVA) Trading Down 8.7% - Here's What Happened

Key Points

• Ceva, Inc. (NASDAQ:CEVA) experienced a significant drop in stock price, declining by 8.7% to close at $27.99, with trading volume falling 33% compared to its average.
• Analysts maintain a mixed outlook, with Rosenblatt Securities issuing a "buy" rating and a $40 target price, while Weiss Ratings has a "sell" rating, leading to an average target price of $35.60.
• Despite a recent report showing a negative net margin and year-over-year revenue decline, the company beat earnings per share estimates for the last quarter.

Ceva, Inc. (NASDAQ:CEVA - Get Free Report) was down 8.7% on Friday . The company traded as low as $27.75 and last traded at $27.99. Approximately 191,788 shares traded hands during trading, a decline of 33% from the average daily volume of 286,513 shares. The stock had previously closed at $30.66.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Rosenblatt Securities reaffirmed a "buy" rating and issued a $40.00 target price on shares of Ceva in a research note on Thursday, August 14th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Ceva in a research note on Saturday, September 27th. Five investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $35.60.

Ceva Price Performance

The stock has a market cap of $661.82 million, a PE ratio of -65.88 and a beta of 1.29. The business has a 50 day moving average price of $24.22 and a two-hundred day moving average price of $23.14.

Ceva (NASDAQ:CEVA - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The semiconductor company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. The company had revenue of $25.68 million during the quarter, compared to analyst estimates of $25.33 million. Ceva had a negative net margin of 9.48% and a negative return on equity of 3.04%. The firm's revenue was down 9.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.17 EPS. On average, sell-side analysts forecast that Ceva, Inc. will post -0.12 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ceva

Large investors have recently made changes to their positions in the business. FNY Investment Advisers LLC bought a new position in shares of Ceva during the second quarter valued at approximately $42,000. AlphaQuest LLC raised its holdings in Ceva by 123.6% in the 2nd quarter. AlphaQuest LLC now owns 2,451 shares of the semiconductor company's stock worth $54,000 after purchasing an additional 1,355 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in shares of Ceva by 422.2% in 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. GAMMA Investing LLC boosted its stake in shares of Ceva by 44.5% during the 1st quarter. GAMMA Investing LLC now owns 3,437 shares of the semiconductor company's stock valued at $88,000 after purchasing an additional 1,058 shares in the last quarter. Finally, ProShare Advisors LLC increased its position in shares of Ceva by 5.1% during the second quarter. ProShare Advisors LLC now owns 9,853 shares of the semiconductor company's stock valued at $217,000 after buying an additional 479 shares during the period. 85.37% of the stock is currently owned by institutional investors.

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.

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