Short Interest in Canaan Inc. (NASDAQ:CAN) Rises By 57.6%

Canaan Inc. (NASDAQ:CAN - Get Free Report) was the target of a large increase in short interest during the month of May. As of May 15th, there was short interest totalling 34,200,000 shares, an increase of 57.6% from the April 30th total of 21,700,000 shares. Currently, 12.2% of the company's stock are short sold. Based on an average daily trading volume, of 20,890,000 shares, the days-to-cover ratio is presently 1.6 days.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. BNP Paribas Financial Markets bought a new position in shares of Canaan during the fourth quarter valued at approximately $92,000. Millennium Management LLC boosted its holdings in Canaan by 139.7% in the fourth quarter. Millennium Management LLC now owns 2,808,545 shares of the company's stock worth $5,758,000 after purchasing an additional 1,637,019 shares during the last quarter. Raymond James Financial Inc. bought a new stake in shares of Canaan in the fourth quarter worth $33,000. Private Advisor Group LLC purchased a new position in Canaan in the fourth quarter worth about $102,000. Finally, Victory Capital Management Inc. purchased a new position in Canaan in the fourth quarter worth about $598,000. 70.14% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on CAN shares. Compass Point initiated coverage on Canaan in a research note on Tuesday, March 18th. They issued a "buy" rating and a $2.50 price target for the company. Rosenblatt Securities dropped their price objective on shares of Canaan from $8.00 to $5.00 and set a "buy" rating for the company in a research note on Wednesday, May 21st. Benchmark reduced their target price on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a report on Wednesday, May 21st. Finally, HC Wainwright restated a "buy" rating and set a $3.00 price objective on shares of Canaan in a research report on Thursday, March 27th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $2.90.

Canaan Stock Up 1.8%

Shares of NASDAQ CAN traded up $0.01 during trading on Tuesday, hitting $0.61. The stock had a trading volume of 42,736,807 shares, compared to its average volume of 14,355,004. The company has a debt-to-equity ratio of 0.08, a current ratio of 2.03 and a quick ratio of 1.45. The company has a market capitalization of $171.88 million, a PE ratio of -0.45 and a beta of 3.26. Canaan has a 12 month low of $0.53 and a 12 month high of $3.27. The firm has a fifty day moving average of $0.74 and a two-hundred day moving average of $1.47.

Canaan (NASDAQ:CAN - Get Free Report) last issued its quarterly earnings results on Wednesday, March 26th. The company reported ($2.17) EPS for the quarter, missing analysts' consensus estimates of ($0.88) by ($1.29). The business had revenue of $88.77 million for the quarter, compared to the consensus estimate of $88.50 million. Canaan had a negative return on equity of 60.37% and a negative net margin of 128.85%. During the same quarter last year, the business posted ($2.16) earnings per share. As a group, equities research analysts forecast that Canaan will post -0.74 EPS for the current fiscal year.

Canaan declared that its Board of Directors has approved a stock repurchase plan on Tuesday, May 27th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

About Canaan

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.