Ceva slides after stock offering launched

Shares of Ceva CEVA.O, licensor of silicon and software intellectual property solutions for connected devices, down 8.6% premarket to $21.55 as co looks to raise equity

Rockville, Maryland-based co late Mon commenced 3 mln share offering, saying to increase financial flexibility, obtain capital and boost its public float

It intends to use net offering proceeds to fund potential acquisitions or investments, for working capital, capex, share repurchases, among other purposes

Ceva has ~24 mln shares outstanding

JP Morgan is lead bookrunner, joined by UBS as junior active bookrunner for offering

Shares, which have fallen prior three sessions, down 25% YTD through Mon

5 of 6 analysts rate CEVA "strong buy" or "buy", 1 rates "hold"; their median PT is $35, per LSEG