Canaan (NASDAQ:CAN) Rating Increased to Sell at Wall Street Zen

Key Points

• Wall Street Zen moved its rating on Canaan to a "sell" in a research note issued Saturday.
• Despite that change, the analyst consensus remains a Moderate Buy (six Buys, two Holds, one Sell) with a consensus price target of $2.17.
• Canaan trades around $0.57 with a market cap of ~$214M and last reported EPS of ($0.13) versus an expected ($0.06), showing a negative net margin (~39.7%) and negative ROE (~60.7%), and analysts forecast FY EPS of about -0.74.

Canaan (NASDAQ:CAN - Get Free Report) was upgraded by equities research analysts at Wall Street Zen to a "sell" rating in a research note issued on Saturday.

Other analysts also recently issued research reports about the company. HC Wainwright reissued a "buy" rating and issued a $1.50 price target on shares of Canaan in a research note on Wednesday, February 11th. Benchmark dropped their price target on Canaan from $4.00 to $2.00 and set a "buy" rating on the stock in a research note on Wednesday, February 11th. BTIG Research reissued a "buy" rating and issued a $3.00 price target on shares of Canaan in a research note on Wednesday, February 11th. Rosenblatt Securities reissued a "buy" rating and issued a $2.25 price target on shares of Canaan in a research note on Monday, March 16th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Canaan in a research report on Wednesday, January 21st. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $2.17.

Canaan Stock Performance

CAN opened at $0.57 on Friday. The business's 50-day moving average price is $0.48 and its two-hundred day moving average price is $0.83. Canaan has a 1 year low of $0.39 and a 1 year high of $2.22. The company has a market capitalization of $214.04 million, a price-to-earnings ratio of -1.20 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 results on Wednesday, February 11th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.07). Canaan had a negative net margin of 39.69% and a negative return on equity of 60.70%. The firm had revenue of $196.27 million during the quarter, compared to analyst estimates of $25.30 million. Equities analysts expect that Canaan will post -0.74 EPS for the current fiscal year.

Institutional Trading of Canaan

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAN. 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 acquiring an additional 777,019 shares during the last quarter. SBI Securities Co. Ltd. increased its stake in shares of Canaan by 155.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company's stock worth $1,172,000 after purchasing an additional 1,034,040 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Canaan by 52.0% in the 1st 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. Virtu Financial LLC bought a new stake in shares of Canaan in the 4th quarter valued at about $46,000. Finally, SG Americas Securities LLC acquired a new stake in Canaan in the 1st quarter valued at about $43,000. 70.14% of the stock is owned by institutional investors.

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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