Wall Street Zen Downgrades Canaan (NASDAQ:CAN) to Sell

by · The Cerbat Gem

Canaan (NASDAQ:CAN – Get Free Report) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

Several other equities analysts also recently commented on the company. Rosenblatt Securities restated a “buy” rating and set a $4.00 target price on shares of Canaan in a research report on Thursday. BTIG Research reissued a “buy” rating on shares of Canaan in a report on Friday. B. Riley reduced their target price on shares of Canaan from $3.00 to $2.50 and set a “buy” rating on the stock in a research note on Friday, November 21st. Northland Securities set a $1.75 target price on shares of Canaan in a research report on Friday, October 3rd. Finally, Benchmark lifted their price target on shares of Canaan from $2.00 to $4.00 and gave the company a “buy” rating in a report on Thursday, October 23rd. Six equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Canaan has a consensus rating of “Moderate Buy” and an average price target of $2.96.

Read Our Latest Research Report on CAN

Canaan Stock Performance

NASDAQ:CAN opened at $0.79 on Friday. The company has a 50-day moving average of $0.87 and a 200-day moving average of $0.94. Canaan has a 52 week low of $0.53 and a 52 week high of $2.39. The company has a market capitalization of $294.14 million, a price-to-earnings ratio of -1.16 and a beta of 2.88.

Canaan (NASDAQ:CAN – Get Free Report) last posted its earnings results on Tuesday, November 18th. The company reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.01. The business had revenue of $21.17 million for the quarter, compared to analysts’ expectations of $18.26 million. Canaan had a negative net margin of 51.66% and a negative return on equity of 71.85%. During the same quarter in the previous year, the firm posted ($0.01) earnings per share. Sell-side analysts forecast that Canaan will post -0.74 EPS for the current year.

Canaan declared that its board has initiated a share buyback plan on Wednesday, December 17th that allows the company to repurchase $0.00 in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Canaan

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. SBI Securities Co. Ltd. raised its stake 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 worth $125,000 after acquiring an additional 49,206 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd acquired a new stake in shares of Canaan in the second quarter valued at approximately $355,000. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Canaan by 52.0% in the first quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company’s stock valued at $516,000 after purchasing an additional 200,869 shares in the last quarter. Institutional investors and hedge funds own 70.14% of the company’s stock.

Canaan Company Profile

(Get Free Report)

Canaan Inc is a China-based technology company specializing in the design and manufacture of high-performance computing hardware for the digital currency and blockchain industry. The company’s core business revolves around application-specific integrated circuit (ASIC) miners, which are purpose-built machines optimized for cryptocurrency mining. By focusing on energy efficiency and processing power, Canaan’s mining rigs aim to deliver competitive hash rates while managing power consumption in large-scale operations.

The flagship product line, known as AvalonMiner, encompasses a range of models tailored to different scales of mining activity, from small-scale hobbyist setups to industrial farms.

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