Canaan Target of Unusually High Options Trading (NASDAQ:CAN)

Key Points

• Canaan Inc. experienced unusually high options trading, with investors purchasing 7,980 call options, a 55% increase over the average daily volume.
• Institutional investors and hedge funds own approximately 70.14% of Canaan's stock, with notable increases in stakes from major firms like MIRAE ASSET GLOBAL ETFS and Millennium Management LLC.
• Analysts have varied views on Canaan's stock, with a consensus rating of "Moderate Buy" and an average price target of $2.50, indicating potential for growth ahead.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors purchased 7,980 call options on the stock. This represents an increase of 55% compared to the average daily volume of 5,165 call options.

Hedge Funds Weigh In On Canaan

Several large investors have recently made changes to their positions in CAN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Canaan by 15.4% during 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 buying an additional 525,772 shares during the period. BNP Paribas Financial Markets bought a new stake in Canaan in the 4th quarter worth about $92,000. Millennium Management LLC grew its holdings in Canaan by 139.7% in the 4th quarter. Millennium Management LLC now owns 2,808,545 shares of the company's stock worth $5,758,000 after acquiring an additional 1,637,019 shares during the last quarter. Two Sigma Investments LP lifted its stake in shares of Canaan by 69.0% in the fourth quarter. Two Sigma Investments LP now owns 2,325,312 shares of the company's stock worth $4,767,000 after buying an additional 949,244 shares in the last quarter. Finally, Two Sigma Advisers LP lifted its stake in shares of Canaan by 251.9% in the fourth quarter. Two Sigma Advisers LP now owns 1,365,700 shares of the company's stock worth $2,800,000 after buying an additional 977,600 shares in the last quarter. Institutional investors and hedge funds own 70.14% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently commented on CAN. Northland Securities began coverage on shares of Canaan in a research note on Wednesday, June 18th. They issued a "market perform" rating and a $1.50 price objective on the stock. Northland Capmk raised shares of Canaan to a "hold" rating in a research note on Wednesday, June 18th. Compass Point assumed coverage on shares of Canaan in a research note on Monday, September 15th. They issued a "buy" rating on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $4.00 target price on shares of Canaan in a report on Friday, September 12th. Finally, B. Riley lowered their target price on shares of Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a report on Thursday, July 10th. Five equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Canaan has an average rating of "Moderate Buy" and a consensus price target of $2.50.

Canaan Price Performance

CAN stock traded up $0.09 during midday trading on Wednesday, reaching $0.84. The company had a trading volume of 26,000,288 shares, compared to its average volume of 27,567,391. The company has a market capitalization of $311.37 million, a P/E ratio of -0.92 and a beta of 3.45. The firm has a 50-day moving average price of $0.75 and a 200-day moving average price of $0.76. Canaan has a 1 year low of $0.53 and a 1 year high of $3.27. 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 posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $13.29 million. Canaan has set its Q3 2025 guidance at EPS. On average, research analysts anticipate that Canaan will post -0.74 earnings per share for the current fiscal year.

Canaan announced that its board has authorized a stock repurchase program on Tuesday, May 27th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

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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