Canaan (NASDAQ:CAN) Shares Up 9.7% – Still a Buy?

Canaan Inc. Sponsored ADR (NASDAQ:CAN)’s stock price shot up 9.7% on Monday . The stock traded as high as $0.3680 and last traded at $0.3512. 11,420,194 shares were traded during mid-day trading, an increase of 11% from the average session volume of 10,266,210 shares. The stock had previously closed at $0.3202.

Analysts Set New Price Targets

Several brokerages recently weighed in on CAN. Weiss Ratings downgraded shares of Canaan from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, May 19th. Wall Street Zen upgraded shares of Canaan to a “sell” rating in a research report on Saturday, April 18th. Rosenblatt Securities decreased their target price on shares of Canaan from $2.25 to $1.30 and set a “buy” rating for the company in a research report on Wednesday, May 20th. Finally, BTIG Research reiterated a “buy” rating and issued a $3.00 target price on shares of Canaan in a research report on Tuesday, May 19th. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $2.01.

Canaan Stock Down 4.0%

The stock’s 50-day moving average is $0.45 and its 200-day moving average is $0.58. The stock has a market cap of $236.92 million, a P/E ratio of -0.97 and a beta of 2.53. The company has a current ratio of 3.34, a quick ratio of 2.04 and a debt-to-equity ratio of 0.09.

Canaan (NASDAQ:CAN) last announced its earnings results on Tuesday, May 19th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.06). The company had revenue of $62.69 million during the quarter, compared to the consensus estimate of $9.50 million. Canaan had a negative net margin of 41.71% and a negative return on equity of 55.84%. During the same quarter in the prior year, the company earned ($0.02) EPS. As a group, research analysts anticipate that Canaan Inc. Sponsored ADR will post -0.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Canaan

Large investors have recently made changes to their positions in the business. SG Americas Securities LLC bought a new position in shares of Canaan during the 1st quarter valued at about $43,000. Virtu Financial LLC bought a new position in shares of Canaan during the 4th quarter valued at about $46,000. Goldman Sachs Group Inc. boosted its position in shares of 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 in the last quarter. Finally, SBI Securities Co. Ltd. boosted its position in shares of Canaan by 155.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company’s stock valued at $1,172,000 after purchasing an additional 1,034,040 shares in the last quarter. Institutional investors own 70.14% of the company’s stock.

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.