Canaan Inc. Sponsored ADR (NASDAQ:CAN) Receives $2.17 Consensus Target Price from Analysts

Canaan Inc. Sponsored ADR (NASDAQ:CAN) has been assigned an average rating of “Moderate Buy” from the nine brokerages that are covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $2.1667.

A number of brokerages have commented on CAN. Benchmark lowered 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, February 11th. BTIG Research reaffirmed a “buy” rating and issued a $3.00 price objective on shares of Canaan in a report on Wednesday, February 11th. Rosenblatt Securities reiterated a “buy” rating and issued a $2.25 price objective on shares of Canaan in a research note on Monday, March 16th. Wall Street Zen cut shares of Canaan from a “hold” rating to a “sell” rating in a report on Saturday, January 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Canaan in a research report on Wednesday, January 21st.

Canaan Price Performance

CAN stock opened at $0.42 on Friday. The stock has a market capitalization of $156.06 million, a PE ratio of -0.87 and a beta of 2.46. Canaan has a 52 week low of $0.39 and a 52 week high of $2.22. The company has a quick ratio of 1.93, a current ratio of 3.31 and a debt-to-equity ratio of 0.06. The firm has a 50 day moving average of $0.51 and a 200 day moving average of $0.85.

Canaan (NASDAQ:CAN) last posted its quarterly earnings results on Wednesday, February 11th. The company reported ($0.13) earnings per share (EPS) 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 analysts’ expectations of $25.30 million. Canaan had a negative return on equity of 60.70% and a negative net margin of 39.69%. Sell-side analysts forecast that Canaan will post -0.74 earnings per share for the current year.

Canaan announced that its board has approved a stock repurchase program on Wednesday, December 17th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Canaan

Several hedge funds have recently bought and sold shares of the stock. OVERSEA CHINESE BANKING Corp Ltd grew its stake in shares of Canaan by 135.5% during the 3rd 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 period. SBI Securities Co. Ltd. lifted its stake in shares of Canaan by 228.1% in the 3rd quarter. SBI Securities Co. Ltd. now owns 664,845 shares of the company’s stock valued at $586,000 after purchasing an additional 462,240 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Canaan by 52.0% in 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. Finally, Virtu Financial LLC purchased a new stake in Canaan during the fourth quarter worth $46,000. Hedge funds and other institutional investors own 70.14% of the company’s stock.

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.