Canaan (NASDAQ:CAN) Shares Gap Down - Time to Sell?

Key Points

• Canaan Inc. shares experienced a gap down, opening at $1.41 after closing at $1.52, with the last trade recorded at $1.65.
• Despite recent downgrades from some analysts, six equities research analysts rated the stock as a Buy, with a consensus price target of $3.32.
• The company reported a loss of ($0.03) EPS in its last quarterly results, exceeding expectations, with a projected EPS of -0.74 for the current fiscal year.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $1.52, but opened at $1.41. Canaan shares last traded at $1.65, with a volume of 41,723,664 shares traded.

Analysts Set New Price Targets

A number of brokerages recently commented on CAN. Weiss Ratings restated a "sell (d-)" rating on shares of Canaan in a research note on Wednesday, October 8th. Zacks Research upgraded Canaan from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 20th. Northland Capmk upgraded Canaan to a "hold" rating in a research note on Wednesday, June 18th. BTIG Research restated a "buy" rating and set a $8.00 price objective on shares of Canaan in a research note on Tuesday. Finally, Compass Point began coverage on Canaan in a research note on Monday, September 15th. They set a "buy" rating for the company. Six equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell 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 $3.32.

Canaan Stock Performance

The company has a market cap of $665.63 million, a P/E ratio of -1.98 and a beta of 3.49. The company has a 50 day moving average price of $0.85 and a 200-day moving average price of $0.76. The company has a quick ratio of 1.32, a current ratio of 1.78 and a debt-to-equity ratio of 0.07.

Canaan (NASDAQ:CAN - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.10. Canaan had a negative return on equity of 92.49% and a negative net margin of 77.01%.The company had revenue of $13.95 million during the quarter, compared to analysts' expectations of $13.29 million. Canaan has set its Q3 2025 guidance at EPS. Equities analysts expect that Canaan Inc. Sponsored ADR will post -0.74 EPS for the current fiscal year.

Institutional Trading of Canaan

Institutional investors have recently modified their holdings of the company. GMT Capital Corp acquired a new stake in shares of Canaan in the first quarter valued at $86,000. SBI Securities Co. Ltd. lifted its holdings in shares of Canaan by 32.1% in the second quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company's stock valued at $125,000 after buying an additional 49,206 shares during the period. Virtu Financial LLC acquired a new stake in shares of Canaan in the first quarter valued at $320,000. OVERSEA CHINESE BANKING Corp Ltd acquired a new stake in shares of Canaan in the second quarter valued at $355,000. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of 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 during the period. Institutional investors and hedge funds own 70.14% of the company's stock.

Canaan Company Profile

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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