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

Key Points

• Canaan has a consensus “Moderate Buy” rating from eight brokerages, with six buys, one hold and one sell. The average 12-month price target is $2.01, although Rosenblatt cut its target to $1.30 while BTIG maintained a $3.00 target.
• Institutional investors and hedge funds own 70.14% of Canaan’s stock, with Goldman Sachs increasing its holdings by 52% and SBI Securities expanding its stake by 155.5%.
• Canaan’s shares opened at $0.20, near their 52-week low of $0.15, while the company reported a quarterly loss of $0.13 per share versus the $0.07 expected loss. Revenue was $62.69 million, but the company posted negative margins and return on equity.

Shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) have been given an average rating of "Moderate Buy" by the eight brokerages that are currently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $2.0083.

A number of brokerages recently commented on CAN. Rosenblatt Securities dropped their target price on Canaan from $2.25 to $1.30 and set a "buy" rating on the stock in a research report on Wednesday, May 20th. Weiss Ratings lowered shares of Canaan from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, May 19th. Wall Street Zen raised Canaan to a "sell" rating in a report on Saturday, April 18th. Finally, BTIG Research restated a "buy" rating and issued a $3.00 price objective on shares of Canaan in a research report on Tuesday, May 19th.

Hedge Funds Weigh In On Canaan

A number of large investors have recently bought and sold shares of CAN. Goldman Sachs Group Inc. grew its holdings in Canaan by 52.0% in the first 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 during the period. SBI Securities Co. Ltd. grew its stake in Canaan by 155.5% in the 4th quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company's stock valued at $1,172,000 after acquiring an additional 1,034,040 shares during the period. Virtu Financial LLC purchased a new stake in Canaan in the 4th quarter worth $46,000. Finally, SG Americas Securities LLC acquired a new position in Canaan during the first quarter worth $43,000. Institutional investors and hedge funds own 70.14% of the company's stock.

Canaan Stock Down 1.2%

CAN stock opened at $0.20 on Thursday. The stock has a market capitalization of $141.16 million, a PE ratio of -0.58 and a beta of 2.62. Canaan has a 52 week low of $0.15 and a 52 week high of $2.22. The company has a quick ratio of 2.04, a current ratio of 3.34 and a debt-to-equity ratio of 0.09. The firm has a 50 day moving average of $0.30 and a 200 day moving average of $0.44.

Canaan (NASDAQ:CAN - Get Free Report) last posted its quarterly earnings data on Tuesday, May 19th. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.06). Canaan had a negative return on equity of 55.84% and a negative net margin of 41.71%.The company had revenue of $62.69 million for the quarter, compared to analyst estimates of $9.50 million. During the same quarter in the previous year, the firm posted ($0.02) earnings per share. Sell-side analysts forecast that Canaan will post -0.15 earnings per share for the current year.

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.

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