Canaan Inc. Sponsored ADR (NASDAQ:CAN) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN) have been assigned an average recommendation of “Moderate Buy” from the nine brokerages that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating on the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $2.25.

Several research firms have issued reports on CAN. BTIG Research restated a “buy” rating and issued a $3.00 price target on shares of Canaan in a research report on Wednesday. Rosenblatt Securities cut their target price on Canaan from $4.00 to $2.50 and set a “buy” rating on the stock in a research report on Monday. Benchmark decreased their price target on Canaan from $4.00 to $2.00 and set a “buy” rating for the company in a research report on Wednesday. Wall Street Zen downgraded Canaan from a “hold” rating to a “sell” rating in a report on Saturday, January 17th. Finally, HC Wainwright restated a “buy” rating and set a $1.50 price target on shares of Canaan in a report on Wednesday.

Hedge Funds Weigh In On Canaan

A number of hedge funds have recently added to or reduced their stakes in CAN. SBI Securities Co. Ltd. boosted its holdings in Canaan by 155.5% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company’s stock worth $1,172,000 after acquiring an additional 1,034,040 shares in the last quarter. OVERSEA CHINESE BANKING Corp Ltd raised its stake in shares of Canaan by 135.5% in the third quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 1,350,460 shares of the company’s stock worth $1,190,000 after purchasing an additional 777,019 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of Canaan by 52.0% during the first quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company’s stock valued at $516,000 after buying an additional 200,869 shares during the last quarter. Institutional investors own 70.14% of the company’s stock.

Canaan Stock Down 6.6%

CAN stock traded down $0.04 during trading on Thursday, reaching $0.52. 7,099,617 shares of the company’s stock were exchanged, compared to its average volume of 18,664,514. The firm has a market cap of $195.02 million, a PE ratio of -1.09 and a beta of 2.85. Canaan has a 1-year low of $0.50 and a 1-year high of $2.22. The company’s fifty day moving average price is $0.76 and its 200-day moving average price is $0.92.

Canaan (NASDAQ:CAN) last issued its quarterly earnings results on Tuesday, February 10th. The company reported ($0.13) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.07). The company had revenue of $196.27 million during the quarter, compared to analyst estimates of $25.30 million. Canaan had a negative return on equity of 66.53% and a negative net margin of 39.69%. As a group, sell-side analysts expect that Canaan will post -0.74 earnings per share for the current fiscal year.

Canaan declared that its Board of Directors has authorized a share buyback program on Wednesday, December 17th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Canaan Company Profile

Canaan Inc is a China-based technology company specializing in the design and manufacture of high-performance computing hardware for the digital currency and blockchain industry. The company’s core business revolves around application-specific integrated circuit (ASIC) miners, which are purpose-built machines optimized for cryptocurrency mining. By focusing on energy efficiency and processing power, Canaan’s mining rigs aim to deliver competitive hash rates while managing power consumption in large-scale operations.

The flagship product line, known as AvalonMiner, encompasses a range of models tailored to different scales of mining activity, from small-scale hobbyist setups to industrial farms.