Canaan (NASDAQ:CAN) Shares Up 24.3% - Here's Why

Key Points

• Canaan Inc. shares surged 24.3% to $1.36 amid heightened trading volume of 46.5 million shares, significantly above the average.
• Brokerages have shown a mixed outlook for Canaan, with ratings ranging from "strong sell" to "buy," and a consensus rating of "hold" with an average price target of $2.54.
• The company reported improved earnings, beating estimates with a quarter revenue of $13.95 million, albeit still facing negative margins and return on equity.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) shares shot up 24.3% during mid-day trading on Monday . The company traded as high as $1.34 and last traded at $1.36. 46,501,863 shares changed hands during trading, an increase of 50% from the average session volume of 31,067,824 shares. The stock had previously closed at $1.09.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CAN. Zacks Research raised Canaan from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 20th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $4.00 price target on shares of Canaan in a report on Friday, September 12th. Northland Capmk raised Canaan to a "hold" rating in a report on Wednesday, June 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Canaan in a report on Wednesday, October 8th. Finally, Northland Securities set a $1.75 price target on Canaan in a report on Friday, October 3rd. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $2.54.

Canaan Trading Up 29.8%

The stock has a market capitalization of $527.65 million, a P/E ratio of -1.57 and a beta of 3.49. The firm's 50 day moving average price is $0.83 and its 200 day moving average price is $0.76. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.78 and a quick ratio of 1.32.

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

Institutional Trading of Canaan

Several institutional investors have recently added to or reduced their stakes in the business. GMT Capital Corp bought a new stake in shares of Canaan in the 1st quarter worth $86,000. SBI Securities Co. Ltd. increased its holdings in shares of Canaan by 32.1% in the 2nd quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company's stock worth $125,000 after purchasing an additional 49,206 shares in the last quarter. Virtu Financial LLC bought a new stake in shares of Canaan in the 1st quarter worth $320,000. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in shares of Canaan in the 2nd quarter worth $355,000. Finally, Goldman Sachs Group Inc. increased 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 worth $516,000 after purchasing an additional 200,869 shares in the last quarter. 70.14% of the stock is currently owned by hedge funds and other 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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