Canaan Inc. Sponsored ADR (NASDAQ:CAN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Canaan Inc. has received an average consensus rating of "Moderate Buy" from analysts, with three hold recommendations and five buy recommendations.
• The average 12-month price target for Canaan's stock is $2.67, despite recent adjustments from various research firms.
• Institutional investors now own 70.14% of Canaan's stock, with significant increases in stakes from firms like Goldman Sachs and SBI Securities.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) has earned an average rating of "Moderate Buy" from the eight ratings firms that are currently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $2.50.

CAN has been the subject of a number of recent analyst reports. Northland Capmk raised Canaan to a "hold" rating in a research report on Wednesday, June 18th. Benchmark decreased their target price on Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research report on Wednesday, May 21st. Rosenblatt Securities decreased their target price on Canaan from $5.00 to $4.00 and set a "buy" rating for the company in a research report on Friday. Northland Securities initiated coverage on Canaan in a research report on Wednesday, June 18th. They issued a "market perform" rating and a $1.50 target price for the company. Finally, Wall Street Zen raised Canaan from a "sell" rating to a "hold" rating in a research report on Saturday.

Canaan Stock Down 4.4%

Shares of CAN stock traded down $0.03 during mid-day trading on Thursday, reaching $0.74. 35,054,387 shares of the company's stock traded hands, compared to its average volume of 27,433,059. Canaan has a 12 month low of $0.53 and a 12 month high of $3.27. The company has a market cap of $275.27 million, a P/E ratio of -0.82 and a beta of 3.25. The company has a quick ratio of 1.11, a current ratio of 1.50 and a debt-to-equity ratio of 0.09. The company's 50-day moving average price is $0.72 and its 200-day moving average price is $0.92.

Canaan (NASDAQ:CAN - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.10. The firm had revenue of $13.95 million during the quarter, compared to analyst estimates of $13.29 million. Canaan had a negative return on equity of 96.52% and a negative net margin of 77.01%. On average, equities analysts expect that Canaan will post -0.74 earnings per share for the current fiscal year.

Canaan declared that its Board of Directors has initiated a share buyback plan on Tuesday, May 27th that authorizes the company to buyback $0.00 in shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in Canaan by 2.6% in the 4th quarter. Vanguard Group Inc. now owns 8,760,909 shares of the company's stock worth $17,960,000 after purchasing an additional 223,241 shares during the period. Invesco Ltd. boosted its stake in Canaan by 5,016.8% in the 1st quarter. Invesco Ltd. now owns 7,235,144 shares of the company's stock worth $6,351,000 after purchasing an additional 7,093,743 shares during the period. Tidal Investments LLC bought a new position in Canaan in the 4th quarter worth approximately $9,584,000. Vident Advisory LLC boosted its stake in Canaan by 2,306.4% in the 4th quarter. Vident Advisory LLC now owns 4,311,718 shares of the company's stock worth $8,839,000 after purchasing an additional 4,132,539 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Canaan by 15.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,941,515 shares of the company's stock worth $3,460,000 after acquiring an additional 525,772 shares in the last quarter. 70.14% of the stock is currently owned by institutional investors.

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.