Canaan (NASDAQ:CAN) Trading Down 7.9% - Here's Why

Key Points

• Canaan Inc.'s shares fell by 7.9%, trading between $1.77 and $1.81, on a day when the trading volume was 21% lower than average.
• Research analysts have mixed opinions on Canaan, with targets ranging from a low of $1.75 to a high of $4.00, and a consensus rating of "Moderate Buy."
• The company reported a revenue of $13.95 million for the last quarter, surpassing analyst estimates while posting negative earnings per share of ($0.03).

Shares of Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) traded down 7.9% on Thursday . The stock traded as low as $1.77 and last traded at $1.81. 25,384,550 shares were traded during mid-day trading, a decline of 21% from the average session volume of 32,331,326 shares. The stock had previously closed at $1.96.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Rosenblatt Securities reaffirmed a "buy" rating and issued a $4.00 target price on shares of Canaan in a research report on Monday. Wall Street Zen raised Canaan from a "sell" rating to a "hold" rating in a research report on Saturday, October 11th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Canaan in a research report on Wednesday, October 8th. Northland Securities set a $1.75 price objective on Canaan in a research note on Friday, October 3rd. Finally, Northland Capmk raised Canaan to a "hold" rating in a research note on Wednesday, June 18th. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Canaan currently has a consensus rating of "Moderate Buy" and an average price target of $3.32.

Canaan Price Performance

The stock has a market cap of $632.07 million, a price-to-earnings ratio of -1.85 and a beta of 3.49. The stock has a fifty day simple moving average of $0.90 and a 200-day simple moving average of $0.78. The company has a current ratio of 1.78, a quick ratio of 1.32 and a debt-to-equity ratio of 0.07.

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 analysts' consensus estimates of ($0.13) by $0.10. The firm had revenue of $13.95 million for the quarter, compared to analyst estimates 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 expect that Canaan Inc. Sponsored ADR will post -0.74 EPS for the current year.

Institutional Trading of Canaan

A number of hedge funds have recently modified their holdings of the company. Invesco Ltd. lifted its position in shares of Canaan by 5,016.8% in the 1st quarter. Invesco Ltd. now owns 7,235,144 shares of the company's stock worth $6,351,000 after acquiring an additional 7,093,743 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Canaan by 15.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,941,515 shares of the company's stock worth $3,460,000 after acquiring an additional 525,772 shares during the period. Baader Bank Aktiengesellschaft lifted its position in shares of Canaan by 82.6% in the 1st quarter. Baader Bank Aktiengesellschaft now owns 2,384,261 shares of the company's stock worth $2,089,000 after acquiring an additional 1,078,537 shares during the period. Exchange Traded Concepts LLC lifted its position in shares of Canaan by 35.5% in the 1st quarter. Exchange Traded Concepts LLC now owns 1,855,479 shares of the company's stock worth $1,629,000 after acquiring an additional 486,139 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Canaan by 53.9% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 763,259 shares of the company's stock worth $670,000 after acquiring an additional 267,322 shares during the period. Institutional investors own 70.14% of the company's stock.

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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