Canaan (NASDAQ:CAN) Issues Earnings Results

Key Points

• Canaan (NASDAQ:CAN) reported an earnings per share (EPS) of ($0.03), surpassing analysts' expectations of ($0.13), with revenue hitting $13.95 million compared to an estimated $13.29 million.
• The company's net margin was -77.01% and the return on equity was -96.52%, indicating significant financial challenges.
• Canaan announced a share repurchase plan, suggesting company leadership believes its stock is undervalued, with a market cap of $287.95 million.

Canaan (NASDAQ:CAN - Get Free Report) released its earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.13) by $0.10, Zacks reports. The company had revenue of $13.95 million for the quarter, compared to analyst estimates of $13.29 million. Canaan had a negative net margin of 77.01% and a negative return on equity of 96.52%. Canaan updated its Q3 2025 guidance to EPS.

Canaan Stock Performance

Shares of NASDAQ CAN traded down $0.01 during midday trading on Friday, reaching $0.77. 47,224,164 shares of the company traded hands, compared to its average volume of 41,721,624. Canaan has a 52 week low of $0.53 and a 52 week high of $3.27. The stock has a 50-day moving average price of $0.72 and a 200 day moving average price of $0.93. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.50 and a quick ratio of 1.11. The company has a market cap of $287.95 million, a price-to-earnings ratio of -0.86 and a beta of 3.25.

Canaan announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 27th that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CAN. Northland Securities began coverage on shares of Canaan in a report on Wednesday, June 18th. They set a "market perform" rating and a $1.50 price objective on the stock. Benchmark cut their price objective on shares of Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a report on Wednesday, May 21st. Wall Street Zen lowered shares of Canaan from a "hold" rating to a "sell" rating in a report on Saturday, June 21st. Rosenblatt Securities cut their price objective on shares of Canaan from $5.00 to $4.00 and set a "buy" rating on the stock in a report on Friday. Finally, Northland Capmk upgraded shares of Canaan to a "hold" rating in a report on Wednesday, June 18th. One analyst has rated the stock with a sell rating, three have issued a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $2.50.

Institutional Investors Weigh In On Canaan

An institutional investor recently raised its position in Canaan stock. Goldman Sachs Group Inc. increased its position in shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN - Free Report) by 52.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 587,451 shares of the company's stock after acquiring an additional 200,869 shares during the period. Goldman Sachs Group Inc. owned approximately 0.21% of Canaan worth $516,000 at the end of the most recent 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.

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