Zacks Research Upgrades Canaan (NASDAQ:CAN) to Hold

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 investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Wednesday, August 20th,Zacks.com reports.

A number of other brokerages have also issued reports on CAN. 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. Wall Street Zen upgraded Canaan from a "sell" rating to a "hold" rating in a research report on Saturday, August 16th. Benchmark decreased their price objective on Canaan from $3.00 to $2.00 and set a "buy" rating on the stock in a report on Wednesday, May 21st. Northland Securities began coverage on Canaan in a report on Wednesday, June 18th. They set a "market perform" rating and a $1.50 price target for the company. Finally, B. Riley decreased their target price on Canaan from $3.00 to $2.00 and set a "buy" rating for the company in a research note on Thursday, July 10th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $2.50.

Canaan Trading Down 0.3%

Shares of Canaan stock traded down $0.00 during trading on Wednesday, reaching $0.75. The company's stock had a trading volume of 10,342,706 shares, compared to its average volume of 27,501,904. The company has a market cap of $279.30 million, a price-to-earnings ratio of -0.83 and a beta of 3.25. The company has a quick ratio of 1.32, a current ratio of 1.78 and a debt-to-equity ratio of 0.07. The firm's 50-day moving average is $0.72 and its two-hundred day moving average is $0.86. Canaan has a 52-week low of $0.53 and a 52-week high of $3.27.

Canaan (NASDAQ:CAN - Get Free Report) last issued its quarterly earnings results on Thursday, August 14th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.10. The company had revenue of $13.95 million during the quarter, compared to analyst estimates of $13.29 million. Canaan had a negative net margin of 77.01% and a negative return on equity of 92.49%. Canaan has set its Q3 2025 guidance at EPS. On average, sell-side analysts anticipate that Canaan will post -0.74 earnings per share for the current year.

Canaan declared that its Board of Directors has authorized a stock repurchase program on Tuesday, May 27th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Raymond James Financial Inc. bought a new stake in shares of Canaan in the fourth quarter valued at about $33,000. Wellington Management Group LLP bought a new position in Canaan in the 4th quarter valued at about $48,000. GTS Securities LLC increased its stake in shares of Canaan by 137.7% during the 4th quarter. GTS Securities LLC now owns 67,648 shares of the company's stock worth $139,000 after purchasing an additional 39,183 shares during the last quarter. BNP Paribas Financial Markets purchased a new position in shares of Canaan during the 4th quarter valued at $92,000. Finally, SBI Securities Co. Ltd. lifted its holdings in shares of Canaan by 32.1% during the 2nd quarter. SBI Securities Co. Ltd. now owns 202,605 shares of the company's stock worth $125,000 after acquiring an additional 49,206 shares during the last quarter. 70.14% of the stock is currently owned by 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.