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

Key Points

• "Moderate Buy" consensus from nine analysts (6 buys, 2 holds, 1 sell) with an average 12‑month price target of $2.17.
• Canaan shares opened at $0.50 and trade near their 52‑week low ($0.39) with a market cap of $186M, a negative P/E and weak profitability metrics (negative ROE and net margin).
• The company reported quarterly EPS of -$0.13 (missing the -$0.06 consensus) despite reported revenue of $196.27M, and institutional investors now own about 70.14% of the stock with recent stake increases from OCBC, Goldman Sachs and SBI.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the nine analysts that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and six have assigned a buy recommendation to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $2.1667.

Several brokerages have commented on CAN. Weiss Ratings restated a "sell (d-)" rating on shares of Canaan in a report on Monday, April 20th. BTIG Research reaffirmed a "buy" rating and issued a $3.00 price target on shares of Canaan in a research note on Wednesday, February 11th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $2.25 price target on shares of Canaan in a research note on Monday, March 16th. HC Wainwright reaffirmed a "buy" rating and issued a $1.50 price target on shares of Canaan in a research note on Wednesday, February 11th. Finally, Wall Street Zen raised shares of Canaan to a "sell" rating in a research note on Saturday, April 18th.

Canaan Stock Down 3.4%

Canaan stock opened at $0.50 on Tuesday. The company's 50 day simple moving average is $0.48 and its 200 day simple moving average is $0.80. Canaan has a fifty-two week low of $0.39 and a fifty-two week high of $2.22. The firm has a market capitalization of $186.00 million, a price-to-earnings ratio of -1.04 and a beta of 2.46. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.31 and a quick ratio of 1.93.

Canaan (NASDAQ:CAN - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported ($0.13) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.07). Canaan had a negative return on equity of 60.70% and a negative net margin of 39.69%.The firm had revenue of $196.27 million for the quarter, compared to the consensus estimate of $25.30 million. As a group, sell-side analysts anticipate that Canaan will post -0.2 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. OVERSEA CHINESE BANKING Corp Ltd lifted its stake in Canaan by 135.5% in the third quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 1,350,460 shares of the company's stock valued at $1,190,000 after buying an additional 777,019 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake 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 buying an additional 200,869 shares in the last quarter. Virtu Financial LLC bought a new position in Canaan in the fourth quarter valued at approximately $46,000. SG Americas Securities LLC bought a new position in Canaan in the first quarter valued at approximately $43,000. Finally, SBI Securities Co. Ltd. lifted its stake in Canaan by 155.5% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company's stock valued at $1,172,000 after buying an additional 1,034,040 shares in the last quarter. Institutional investors own 70.14% of the company's stock.

About Canaan

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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