Ceva (NASDAQ:CEVA) Shares Gap Down – Time to Sell?

Ceva, Inc. (NASDAQ:CEVA)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $38.67, but opened at $36.84. Ceva shares last traded at $35.0010, with a volume of 172,580 shares.

Key Stories Impacting Ceva

Here are the key news stories impacting Ceva this week:

• Positive Sentiment: Q2 results exceeded estimates: Ceva reported adjusted earnings of $0.08 per share versus the $0.07 consensus estimate, while revenue reached $29.03 million, ahead of the $28.19 million forecast. Revenue increased 13% year over year. Ceva Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Licensing momentum improved: Ceva said licensing and related revenue reached its highest level in three years, supported by demand for artificial-intelligence and connectivity technologies. This could reinforce the long-term growth outlook for its semiconductor intellectual-property business. Ceva Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Insider buying provides a supportive signal: Company insiders made three open-market purchases during the past six months, including purchases by CEO Amir Panush and CFO Yaniv Arieli, with no reported insider sales.
• Neutral Sentiment: Analyst targets remain above the market: Six analysts have issued targets in the past six months, with a median target of $45. Targets range from $36 to $55, suggesting potential upside but also differing views on Ceva’s valuation and growth prospects.
• Neutral Sentiment: Institutional positioning is mixed: 106 institutions increased their holdings in the latest reported quarter, while 80 reduced positions. BlackRock and State Street added shares, but several other funds—including Handelsbanken Fonder and Jane Street—exited or materially cut their positions.
• Negative Sentiment: The earnings beat did not prevent selling: Reports noted that CEVA shares slipped despite the stronger-than-expected quarter, indicating that investors may have been seeking more substantial guidance or growth acceleration. Ceva remains unprofitable on a GAAP basis, with a reported negative net margin.
• Neutral Sentiment: Cyberattack reports concern a different company: News about a breach involving CEVA Logistics, a shipping partner for Valve, does not appear to involve Ceva, Inc. (NASDAQ: CEVA), the semiconductor IP licensor. Cyberattack Involving CEVA Logistics

Analyst Ratings Changes

Several research firms have recently commented on CEVA. UBS Group raised their price target on Ceva from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Tuesday, May 12th. Benchmark assumed coverage on Ceva in a research note on Wednesday, July 15th. They set a “hold” rating on the stock. JPMorgan Chase & Co. began coverage on Ceva in a research report on Friday, May 8th. They issued a “neutral” rating and a $30.00 target price for the company. Rosenblatt Securities boosted their price target on shares of Ceva from $40.00 to $45.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. Finally, Roth Capital restated a “buy” rating and issued a $40.00 price objective on shares of Ceva in a report on Monday, May 11th. Nine 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 data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $42.80.

Ceva Trading Down 15.4%

The firm has a market cap of $911.50 million, a PE ratio of -73.11 and a beta of 1.99. The firm has a 50 day moving average price of $42.03 and a 200-day moving average price of $30.81.

Ceva (NASDAQ:CEVA) last issued its earnings results on Monday, August 10th. The semiconductor company reported $0.08 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $29.03 million for the quarter, compared to analysts’ expectations of $28.19 million. During the same quarter last year, the company earned $0.07 earnings per share. The firm’s revenue was up 13.0% compared to the same quarter last year. Equities analysts forecast that Ceva, Inc. will post -0.21 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Ceva

A number of institutional investors and hedge funds have recently modified their holdings of CEVA. Hantz Financial Services Inc. boosted its position in shares of Ceva by 77.6% during the 4th quarter. Hantz Financial Services Inc. now owns 1,446 shares of the semiconductor company’s stock worth $31,000 after acquiring an additional 632 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Ceva during the 2nd quarter worth about $49,000. Tower Research Capital LLC TRC lifted its stake 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 worth $60,000 after purchasing an additional 2,208 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Ceva by 771.8% during the third 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 last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings 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 in the last quarter. Institutional investors and hedge funds own 85.37% of the company’s stock.

About Ceva

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.