Canaan (NASDAQ:CAN) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Canaan from a "strong sell" to a "hold" rating, reflecting a shift in sentiment towards the stock.
• Canaan's stock currently holds an average rating of "Moderate Buy" among analysts, with a consensus target price of $2.50.
• The company's recent financial results showed it exceeded earnings expectations, reporting an EPS of ($0.03), which was better than the consensus estimate of ($0.13).

Canaan (NASDAQ:CAN - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other analysts have also recently commented on the stock. 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 research note on Thursday, July 10th. Wall Street Zen upgraded shares of Canaan from a "sell" rating to a "hold" rating in a research note on Saturday, August 16th. Benchmark lowered their target price on shares of Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research note on Wednesday, May 21st. Rosenblatt Securities lowered their target price on shares of Canaan from $5.00 to $4.00 and set a "buy" rating for the company in a research note on Friday, August 15th. Finally, 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 target price for the company. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Canaan presently has a consensus rating of "Moderate Buy" and a consensus target price of $2.50.

Canaan Stock Up 14.0%

Shares of NASDAQ:CAN traded up $0.0923 during trading on Wednesday, reaching $0.7523. The stock had a trading volume of 39,291,698 shares, compared to its average volume of 37,358,736. Canaan has a one year low of $0.5347 and a one year high of $3.27. The company has a market capitalization of $280.53 million, a P/E ratio of -0.84 and a beta of 3.25. The company has a current ratio of 1.78, a quick ratio of 1.32 and a debt-to-equity ratio of 0.07. The firm's 50-day simple moving average is $0.72 and its 200 day simple moving average is $0.87.

Canaan (NASDAQ:CAN - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share for the quarter, beating analysts' consensus estimates 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 business had revenue of $13.95 million for the quarter, compared to analysts' expectations of $13.29 million. Canaan has set its Q3 2025 guidance at EPS. As a group, research analysts expect that Canaan will post -0.74 EPS for the current fiscal year.

Canaan declared that its Board of Directors has approved a stock buyback plan on Tuesday, May 27th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Canaan

Several hedge funds have recently added to or reduced their stakes in the stock. Raymond James Financial Inc. purchased a new position in Canaan in the fourth quarter valued at approximately $33,000. Wellington Management Group LLP acquired a new stake in shares of Canaan in the fourth quarter valued at approximately $48,000. GTS Securities LLC boosted its holdings in shares of Canaan by 137.7% in the fourth quarter. GTS Securities LLC now owns 67,648 shares of the company's stock valued at $139,000 after acquiring an additional 39,183 shares during the period. BNP Paribas Financial Markets acquired a new stake in shares of Canaan in the fourth quarter valued at approximately $92,000. Finally, SBI Securities Co. Ltd. boosted its holdings in shares of Canaan by 32.1% in 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 period. 70.14% of the stock is currently owned by hedge funds and other 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.