Canaan (NASDAQ:CAN) Now Covered by Analysts at Compass Point

Key Points

• Analysts at Compass Point have initiated coverage on Canaan (NASDAQ:CAN) with a "buy" rating, indicating positive sentiment toward the stock.
• Canaan's stock has a consensus price target of $2.50, based on analyses, with five analysts rating it as a buy and three as hold.
• The company reported better-than-expected earnings for the last quarter, with an earnings per share of ($0.03), surpassing the consensus estimate of ($0.13).

Compass Point initiated coverage on shares of Canaan (NASDAQ:CAN - Free Report) in a research note issued to investors on Monday, MarketBeat Ratings reports. The brokerage issued a buy rating on the stock.

Other equities analysts also recently issued research reports about the company. Zacks Research raised Canaan from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 20th. B. Riley reduced their target price on shares of Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research report on Thursday, July 10th. Benchmark dropped their price target on shares of Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research report on Wednesday, May 21st. Northland Capmk raised shares of Canaan to a "hold" rating in a research note on Wednesday, June 18th. Finally, Wall Street Zen raised Canaan from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Five investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $2.50.

Canaan Stock Performance

NASDAQ CAN traded down $0.04 during trading on Monday, hitting $0.78. The company's stock had a trading volume of 25,656,025 shares, compared to its average volume of 27,329,602. The firm has a 50 day moving average price of $0.76 and a 200 day moving average price of $0.77. The company has a quick ratio of 1.32, a current ratio of 1.78 and a debt-to-equity ratio of 0.07. The firm has a market cap of $290.86 million, a P/E ratio of -0.87 and a beta of 3.45. Canaan has a 52 week low of $0.53 and a 52 week high of $3.27.

Canaan (NASDAQ:CAN - Get Free Report) last issued its earnings results on Thursday, August 14th. The company reported ($0.03) EPS for the quarter, beating analysts' consensus estimates of ($0.13) by $0.10. The business 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 92.49% and a negative net margin of 77.01%. Canaan has set its Q3 2025 guidance at EPS. Equities research analysts forecast that Canaan will post -0.74 earnings per share for the current fiscal year.

Canaan declared that its board has approved a stock buyback plan on Tuesday, May 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Canaan

Institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP acquired a new position in Canaan during the fourth quarter worth about $48,000. GTS Securities LLC lifted its stake in shares of Canaan by 137.7% during the fourth quarter. GTS Securities LLC now owns 67,648 shares of the company's stock worth $139,000 after purchasing an additional 39,183 shares in the last quarter. BNP Paribas Financial Markets purchased a new stake in shares of Canaan during the fourth quarter worth about $92,000. SBI Securities Co. Ltd. boosted its position in Canaan by 32.1% during the 2nd 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 period. Finally, GMT Capital Corp acquired a new stake in shares of Canaan in the first quarter valued at $86,000. Institutional investors own 70.14% of the company's stock.

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.