Traders Purchase Large Volume of Call Options on Canaan (NASDAQ:CAN)

Key Points

• Traders purchased a significant number of call options for Canaan Inc. (NASDAQ:CAN), with 35,103 options traded, an increase of 258% compared to the average volume.
• Canaan's stock price rose 7.6% to $1.64, with trading volume reaching 70,106,990 shares, far exceeding its average volume of 31,457,998.
• Several research analysts have issued ratings on Canaan, with a consensus target price of $3.32 and six analysts recommending a "Buy" rating.

Canaan Inc. Sponsored ADR (NASDAQ:CAN - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors bought 35,103 call options on the stock. This represents an increase of 258% compared to the average volume of 9,798 call options.

Canaan Stock Up 7.6%

Shares of NASDAQ:CAN traded up $0.12 during trading on Tuesday, hitting $1.64. 70,106,990 shares of the company were exchanged, compared to its average volume of 31,457,998. The stock has a market cap of $609.69 million, a price-to-earnings ratio of -1.82 and a beta of 3.49. Canaan has a fifty-two week low of $0.53 and a fifty-two week high of $3.27. The firm has a fifty day moving average price of $0.85 and a two-hundred day moving average price of $0.76. 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 posted 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. Canaan had a negative return on equity of 92.49% and a negative net margin of 77.01%.The business had revenue of $13.95 million for the quarter, compared to analyst estimates of $13.29 million. Canaan has set its Q3 2025 guidance at EPS. As a group, research analysts anticipate that Canaan will post -0.74 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

CAN has been the topic of several research analyst reports. 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. Compass Point started coverage on Canaan in a report on Monday, September 15th. They issued a "buy" rating for the company. Northland Capmk upgraded Canaan to a "hold" rating in a report on Wednesday, June 18th. Rosenblatt Securities restated a "buy" rating and issued a $4.00 target price on shares of Canaan in a report on Monday. Finally, BTIG Research reiterated a "buy" rating and set a $8.00 price target on shares of Canaan in a report on Tuesday. Six research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $3.32.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. SBI Securities Co. Ltd. increased its position in shares of Canaan by 32.1% during the second quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company's stock valued at $125,000 after acquiring an additional 49,206 shares during the last quarter. GMT Capital Corp purchased a new stake in Canaan in the first quarter worth $86,000. Goldman Sachs Group Inc. increased its position in Canaan by 52.0% in the first quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company's stock worth $516,000 after buying an additional 200,869 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Canaan by 53.9% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 763,259 shares of the company's stock worth $670,000 after buying an additional 267,322 shares during the last quarter. Finally, Virtu Financial LLC purchased a new stake in Canaan in the first quarter worth $320,000. Institutional investors 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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