Northland Capmk Has Positive View of Canaan FY2025 Earnings

Key Points

• Northland Capital Markets has raised its FY2025 earnings per share estimate for Canaan Inc. from ($0.75) to ($0.45), indicating a more optimistic outlook for the company's financial performance.
• Canaan's recent quarterly results showed earnings of ($0.03), outperforming analyst expectations of ($0.13) and generating revenue of $13.95 million, exceeding the forecast of $13.29 million.
• The stock currently has a consensus rating of "Moderate Buy" with a target price of $2.50, reflecting mixed sentiments among analysts, with several upgrades and downgrades issued recently.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Free Report) - Analysts at Northland Capmk upped their FY2025 earnings per share (EPS) estimates for Canaan in a research report issued on Monday, August 18th. Northland Capmk analyst M. Grondahl now anticipates that the company will post earnings per share of ($0.45) for the year, up from their prior estimate of ($0.75). Northland Capmk currently has a "Hold" rating on the stock. The consensus estimate for Canaan's current full-year earnings is ($0.74) per share.

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, topping analysts' consensus estimates of ($0.13) by $0.10. The company 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.

Other equities analysts have also issued research reports about the company. B. Riley lowered their target price on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a research note on Thursday, July 10th. Rosenblatt Securities lowered their price objective on Canaan from $5.00 to $4.00 and set a "buy" rating on the stock in a research note on Friday, August 15th. Northland Securities started coverage on Canaan in a research note on Wednesday, June 18th. They set a "market perform" rating and a $1.50 price objective on the stock. Wall Street Zen upgraded Canaan from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Finally, Benchmark lowered their price objective on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a research note on Wednesday, May 21st. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $2.50.

Canaan Price Performance

Shares of NASDAQ CAN opened at $0.6747 on Thursday. The firm has a market cap of $251.60 million, a P/E ratio of -0.75 and a beta of 3.25. The company has a current ratio of 1.78, a quick ratio of 1.11 and a debt-to-equity ratio of 0.07. Canaan has a 1-year low of $0.5347 and a 1-year high of $3.27. The business's 50 day moving average is $0.72 and its 200-day moving average is $0.90.

Canaan announced that its board has authorized a stock buyback plan on Tuesday, May 27th that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the company to reacquire shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Canaan

A number of large investors have recently modified their holdings of CAN. Invesco Ltd. boosted its holdings 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 valued at $6,351,000 after purchasing an additional 7,093,743 shares in the last quarter. Tidal Investments LLC acquired a new stake in shares of Canaan during the 4th quarter valued at $9,584,000. Vident Advisory LLC boosted its holdings in shares of Canaan by 2,306.4% during the 4th quarter. Vident Advisory LLC now owns 4,311,718 shares of the company's stock valued at $8,839,000 after acquiring an additional 4,132,539 shares in the last quarter. Marshall Wace LLP acquired a new stake in shares of Canaan during the 4th quarter valued at $5,343,000. Finally, Renaissance Technologies LLC acquired a new stake in shares of Canaan during the 4th quarter valued at $3,689,000. Institutional investors and hedge funds own 70.14% of the company's stock.

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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