Canaan (NASDAQ:CAN) Stock Rating Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Canaan from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy” with a $1.75 price target.
• Canaan shares traded at $0.23, well below their 50-day and 200-day moving averages, while the company reported a quarterly loss of $0.14 per share, $31.86 million in revenue, and negative profitability metrics.
• Institutional investors own 70.14% of Canaan, and Vontobel Holding recently acquired 423,658 shares valued at approximately $146,000.

Canaan (NASDAQ:CAN - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Thursday, Zacks reports.

Several other analysts have also recently weighed in on CAN. Weiss Ratings raised Canaan from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 2nd. JonesTrading upgraded Canaan to a "strong-buy" rating in a research report on Saturday, September 26th. Rosenblatt Securities reissued a "buy" rating and set a $0.75 price objective on shares of Canaan in a report on Tuesday, September 15th. Finally, B. Riley Financial decreased their price objective on shares of Canaan from $2.00 to $1.50 and set a "buy" rating on the stock in a research report on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $1.75.

Canaan Price Performance

NASDAQ:CAN traded down $0.02 during mid-day trading on Thursday, hitting $0.23. 8,819,833 shares of the stock traded hands, compared to its average volume of 10,650,802. The business's 50-day moving average price is $0.32 and its 200 day moving average price is $0.36. The company has a market cap of $165.80 million, a PE ratio of -0.53 and a beta of 2.63. Canaan has a 12-month low of $0.15 and a 12-month high of $2.22. The company has a quick ratio of 1.67, a current ratio of 2.86 and a debt-to-equity ratio of 0.12.

Canaan (NASDAQ:CAN - Get Free Report) last announced its quarterly earnings results on Saturday, August 15th. The company reported ($0.14) EPS for the quarter. The firm had revenue of $31.86 million during the quarter. Canaan had a negative net margin of 67.78% and a negative return on equity of 77.73%. On average, analysts expect that Canaan will post -0.39 EPS for the current fiscal year.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Canaan stock. Vontobel Holding Ltd. purchased a new stake in shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN - Free Report) during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 423,658 shares of the company's stock, valued at approximately $146,000. Vontobel Holding Ltd. owned about 0.06% of Canaan at the end of the most recent reporting period. 70.14% of the stock is owned by institutional investors.

Canaan Company Profile

Canaan Inc is a technology company that designs application-specific integrated circuits (ASICs) and computing hardware for blockchain applications, with a primary focus on Bitcoin mining. Its best-known product line is AvalonMiner, a series of specialized cryptocurrency-mining machines designed to deliver high-performance and energy-efficient computing.

The company also develops artificial intelligence and edge-computing solutions through its Kendryte line of processors and related hardware.

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