Canaan (NASDAQ:CAN) Shares Gap Up - What's Next?

Key Points

• Canaan Inc. shares experienced a significant price increase, gapping up from $1.04 to $1.15 and closing at $1.36, with a trading volume of over 76 million shares.
• Analysts have mixed ratings for the stock, including five "buy" ratings and three "hold" ratings, with a consensus target price of $2.50.
• The company reported earnings of ($0.03) per share, beating consensus estimates, while projecting a -0.74 EPS for the current year.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report)'s stock price gapped up before the market opened on Thursday . The stock had previously closed at $1.04, but opened at $1.15. Canaan shares last traded at $1.36, with a volume of 76,719,733 shares traded.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Northland Capmk upgraded shares of Canaan to a "hold" rating in a research report on Wednesday, June 18th. B. Riley dropped 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. Rosenblatt Securities restated a "buy" rating and set a $4.00 target price on shares of Canaan in a research report on Friday, September 12th. Wall Street Zen upgraded shares of Canaan from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Finally, Compass Point assumed coverage on shares of Canaan in a research report on Monday, September 15th. They set a "buy" rating for the company. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $2.50.

Canaan Trading Up 24.5%

The company has a market cap of $482.91 million, a PE ratio of -1.45 and a beta of 3.49. The stock's 50 day moving average is $0.75 and its 200-day moving average is $0.75. 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 announced its earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.10. The business had revenue of $13.95 million for the quarter, compared to the consensus estimate of $13.29 million. Canaan had a negative net margin of 77.01% and a negative return on equity of 92.49%. Canaan has set its Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that Canaan Inc. Sponsored ADR will post -0.74 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP purchased a new position in Canaan during the 4th quarter worth approximately $48,000. SBI Securities Co. Ltd. raised 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 worth $125,000 after buying an additional 49,206 shares during the last quarter. GMT Capital Corp purchased a new position in Canaan during the 1st quarter worth approximately $86,000. Goldman Sachs Group Inc. raised its position in Canaan by 52.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company's stock worth $516,000 after buying an additional 200,869 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Canaan by 53.9% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 763,259 shares of the company's stock valued at $670,000 after purchasing an additional 267,322 shares in the last 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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