Canaan (NASDAQ:CAN) has received a notable upgrade from Wall Street Zen, which has shifted its rating from sell to hold, according to a research note released on Saturday. This change reflects a broader spectrum of opinions from various equities research analysts regarding the company’s stock.
Analysts Weigh In on Canaan
In addition to Wall Street Zen’s assessment, other analysts have expressed mixed views. On Wednesday, Rosenblatt Securities reaffirmed a “buy” rating while setting a target price of $4.00 for Canaan shares. Conversely, Weiss Ratings issued a “sell (d-)” rating on October 8, 2023, indicating caution among some investors.
BTIG Research also maintained a positive outlook, reiterating a “buy” rating with a target price of $8.00 on October 14, 2023. On the other hand, B. Riley adjusted their target price from $3.00 to $2.50 while still issuing a “buy” rating. Meanwhile, Compass Point recently began coverage of Canaan, issuing a “buy” rating in a report dated September 15, 2023.
Overall, six research analysts have rated Canaan with a Buy designation, three have issued a Hold rating, and one has provided a Sell rating. Current consensus data from MarketBeat indicates a “Moderate Buy” rating, with an average target price of $3.68.
Canaan’s Financial Performance
Canaan reported its latest quarterly earnings on November 18, 2023, revealing a loss of ($0.05) earnings per share (EPS). This figure slightly surpassed analysts’ consensus estimate of ($0.06) by $0.01. The company achieved revenue of $21.17 million for the quarter, exceeding the expected $18.26 million.
Despite these results, Canaan continues to face challenges, with a negative return on equity of 71.85% and a net margin of 51.66%. In the same quarter last year, the company reported a smaller loss of ($0.01) EPS. Analysts predict that Canaan will report an EPS of ($0.74) for the current fiscal year.
Investor Activity and Institutional Holdings
Recent activity among institutional investors indicates growing interest in Canaan. Oversea Chinese Banking Corp Ltd acquired a new stake in the company during the second quarter, investing approximately $355,000. Additionally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd raised its holdings by 15.4% in the first quarter, now owning 3,941,515 shares valued at $3.46 million.
Invesco Ltd. made significant strides, increasing its holdings by an impressive 5,016.8%, now possessing 7,235,144 shares worth $6.35 million after acquiring an additional 7,093,743 shares. Other notable investors include GMT Capital Corp, which purchased a new stake valued at $86,000, and Virtu Financial LLC, which invested approximately $320,000.
Currently, institutional investors hold approximately 70.14% of Canaan’s stock, reflecting strong confidence in the company’s potential growth.
About Canaan
Canaan Inc specializes in the research, design, and sale of integrated circuit (IC) products for bitcoin mining and related components, primarily in the People’s Republic of China. The company is also engaged in the assembly and distribution of mining equipment and spare parts, positioning itself as a key player in the cryptocurrency sector.
As Canaan navigates a fluctuating market, investor sentiment and analyst ratings will play crucial roles in shaping its future trajectory. With ongoing developments, stakeholders are advised to stay informed about the latest insights and updates.
