Canaan Inc. Sponsored ADR (NASDAQ:CAN) Given Consensus Recommendation 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.

Shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) have earned an average recommendation of "Moderate Buy" from the eight analysts that are covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $2.50.

CAN has been the topic of several recent analyst reports. Benchmark cut their target price on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a research note on Wednesday, May 21st. Northland Capmk raised Canaan to a "hold" rating in a research note on Wednesday, June 18th. Rosenblatt Securities cut their target price on Canaan from $5.00 to $4.00 and set a "buy" rating on the stock in a research note on Friday. Northland Securities started coverage on Canaan in a research note on Wednesday, June 18th. They issued a "market perform" rating and a $1.50 price objective on the stock. Finally, B. Riley decreased their target price on Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research note on Thursday, July 10th.

Hedge Funds Weigh In On Canaan

Hedge funds have recently modified their holdings of the stock. SBI Securities Co. Ltd. boosted its position in Canaan by 32.1% during the second quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company's stock valued at $125,000 after purchasing an additional 49,206 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd bought a new position in shares of Canaan in the second quarter worth about $355,000. Goldman Sachs Group Inc. increased its stake in Canaan by 52.0% during the first quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company's stock valued at $516,000 after acquiring an additional 200,869 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Canaan by 15.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,941,515 shares of the company's stock valued at $3,460,000 after acquiring an additional 525,772 shares during the period. Finally, GMT Capital Corp bought a new position in Canaan during the first quarter valued at about $86,000. 70.14% of the stock is currently owned by institutional investors and hedge funds.

Canaan Stock Performance

Canaan stock traded down $0.01 during mid-day trading on Thursday, hitting $0.77. 47,224,164 shares of the company's stock traded hands, compared to its average volume of 41,721,624. The firm has a 50 day moving average price of $0.72 and a 200 day moving average price of $0.92. 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 has a market cap of $287.95 million, a PE ratio of -0.86 and a beta of 3.25. Canaan has a one year low of $0.53 and a one year high of $3.27.

Canaan (NASDAQ:CAN - Get Free Report) last announced its earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.10. The firm had revenue of $13.95 million for the quarter, compared to the consensus estimate 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 forecast that Canaan will post -0.74 EPS for the current year.

Canaan declared that its Board of Directors has initiated a share buyback program on Tuesday, May 27th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its stock is 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.