Canaan (NASDAQ:CAN) Stock Price Up 31.8% - Should You Buy?

Key Points

• Canaan Inc.'s stock price surged 31.8% to $2.11, with increased trading volume compared to its daily average.
• Despite positive quarterly results that beat earnings estimates, the company is still projected to have a negative return on equity, with forecasts indicating an EPS of -0.74 for the current year.
• Analysts have mixed opinions on the stock, with six recommending a buy and one issuing a sell rating, while the average price target sits at $3.32.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report)'s share price rose 31.8% during mid-day trading on Monday . The stock traded as high as $2.02 and last traded at $2.11. Approximately 34,717,740 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 32,752,990 shares. The stock had previously closed at $1.60.

Wall Street Analysts Forecast Growth

CAN has been the topic of several recent research reports. BTIG Research reiterated a "buy" rating and issued a $8.00 price target on shares of Canaan in a report on Tuesday, October 14th. Weiss Ratings restated a "sell (d-)" rating on shares of Canaan in a report on Wednesday, October 8th. Compass Point assumed coverage on Canaan in a report on Monday, September 15th. They set a "buy" rating on the stock. Northland Securities set a $1.75 target price on Canaan in a report on Friday, October 3rd. Finally, B. Riley reduced their target price on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a report on Thursday, July 10th. Six 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $3.32.

Canaan Price Performance

The stock has a market cap of $762.58 million, a price-to-earnings ratio of -2.27 and a beta of 3.49. The company has a 50-day simple moving average of $0.93 and a two-hundred day simple moving average of $0.79. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.32 and a current ratio of 1.78.

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, beating the consensus estimate of ($0.13) by $0.10. The business had revenue of $13.95 million during the quarter, compared to the consensus estimate 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. As a group, equities research analysts forecast that Canaan Inc. Sponsored ADR will post -0.74 EPS for the current year.

Institutional Trading of Canaan

A number of institutional investors have recently modified their holdings of CAN. GMT Capital Corp bought a new stake in shares of Canaan during the first quarter worth about $86,000. SBI Securities Co. Ltd. grew its holdings 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 acquiring an additional 49,206 shares during the last quarter. Virtu Financial LLC bought a new stake in Canaan during the 1st quarter worth approximately $320,000. OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Canaan during the 2nd quarter worth approximately $355,000. Finally, Goldman Sachs Group Inc. grew its holdings 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 acquiring an additional 200,869 shares during the last quarter. 70.14% of the stock is currently owned by institutional investors.

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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