Investors Buy Large Volume of Call Options on Canaan (NASDAQ:CAN)

Canaan Inc. Sponsored ADR (NASDAQ:CAN) was the target of some unusual options trading on Wednesday. Stock traders bought 7,980 call options on the company. This represents an increase of approximately 55% compared to the average daily volume of 5,165 call options.

Canaan Stock Up 19.8%

Shares of Canaan stock opened at $0.89 on Thursday. Canaan has a 1 year low of $0.53 and a 1 year high of $3.27. The business has a 50-day moving average of $0.75 and a two-hundred day moving average of $0.76. The company has a market capitalization of $330.76 million, a P/E ratio of -0.99 and a beta of 3.45. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.78 and a quick ratio of 1.32.

Canaan (NASDAQ:CAN) last announced its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.10. Canaan had a negative return on equity of 92.49% and a negative net margin of 77.01%.The company had revenue of $13.95 million during the quarter, compared to the consensus estimate of $13.29 million. Canaan has set its Q3 2025 guidance at EPS. As a group, equities analysts predict that Canaan will post -0.74 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP acquired a new position in shares of Canaan during the fourth quarter worth about $48,000. GMT Capital Corp acquired a new position in shares of Canaan during the first quarter worth about $86,000. BNP Paribas Financial Markets acquired a new position in shares of Canaan during the fourth quarter worth about $92,000. SBI Securities Co. Ltd. boosted its position in shares of Canaan by 32.1% during the second quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company’s stock worth $125,000 after buying an additional 49,206 shares during the period. Finally, GTS Securities LLC boosted its position in shares of Canaan by 137.7% during the fourth quarter. GTS Securities LLC now owns 67,648 shares of the company’s stock worth $139,000 after buying an additional 39,183 shares during the period. 70.14% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms recently commented on CAN. Northland Capmk upgraded Canaan to a “hold” rating in a report on Wednesday, June 18th. Wall Street Zen upgraded Canaan from a “sell” rating to a “hold” rating in a report on Saturday, August 16th. Zacks Research upgraded Canaan from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 20th. B. Riley dropped their price objective on Canaan from $3.00 to $2.00 and set a “buy” rating for the company in a report on Thursday, July 10th. Finally, Northland Securities began coverage on Canaan in a report on Wednesday, June 18th. They issued a “market perform” rating and a $1.50 price objective for the company. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $2.50.

Canaan Company Profile

Canaan Inc engages in the research, design, and sale of integrated circuit (IC) final mining equipment products by integrating IC products for bitcoin mining and related components in the People's Republic of China. It is also involved in the assembly and distribution of mining equipment and spare parts.