Canaan (NASDAQ:CAN) Stock Rating Lowered by Wall Street Zen

Canaan (NASDAQ:CAN) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Other equities analysts have also issued research reports about the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Canaan in a research note on Wednesday, October 8th. B. Riley lowered their target price on Canaan from $3.00 to $2.50 and set a “buy” rating for the company in a research note on Friday, November 21st. BTIG Research reissued a “buy” rating on shares of Canaan in a report on Friday. Rosenblatt Securities reaffirmed a “buy” rating and set a $4.00 price target on shares of Canaan in a report on Thursday. Finally, Northland Securities set a $1.75 price objective on shares of Canaan in a research note on Friday, October 3rd. Six analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Canaan currently has an average rating of “Moderate Buy” and an average target price of $2.96.

Canaan Stock Down 3.8%

CAN stock opened at $0.79 on Friday. The company’s 50-day moving average price is $0.87 and its two-hundred day moving average price is $0.94. The firm has a market cap of $294.14 million, a P/E ratio of -1.16 and a beta of 2.88. Canaan has a 12 month low of $0.53 and a 12 month high of $2.39.

Canaan (NASDAQ:CAN) last issued its quarterly earnings results on Tuesday, November 18th. The company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.01. Canaan had a negative net margin of 51.66% and a negative return on equity of 71.85%. The company had revenue of $21.17 million during the quarter, compared to the consensus estimate of $18.26 million. During the same quarter in the prior year, the firm posted ($0.01) EPS. Equities analysts predict that Canaan will post -0.74 EPS for the current year.

Canaan announced that its board has authorized a share buyback plan on Wednesday, December 17th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CAN. SBI Securities Co. Ltd. increased its stake in shares of Canaan by 32.1% in the second quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company’s stock valued at $125,000 after buying an additional 49,206 shares during the period. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Canaan in the second quarter valued at approximately $355,000. Finally, Goldman Sachs Group Inc. increased its position in Canaan by 52.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company’s stock valued at $516,000 after purchasing an additional 200,869 shares during the period. 70.14% of the stock is owned by institutional investors and hedge funds.

About Canaan

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.