Canaan Inc. (NASDAQ: CAN) has received a rating upgrade from Wall Street Zen, moving from a “sell” to a “hold” in a research note released on November 18, 2023. This change reflects a growing interest from analysts regarding the company’s prospects amid a fluctuating market.
Analyst Ratings and Price Targets
Several other financial research firms have also recently updated their assessments of Canaan’s stock. Rosenblatt Securities maintained a “buy” rating, setting a target price of $4.00 per share. Conversely, Weiss Ratings reiterated a “sell (D-)” rating the same day.
Analysts at BTIG Research also reaffirmed their “buy” rating, establishing a target price of $8.00. Meanwhile, B. Riley adjusted its target price down from $3.00 to $2.50 while retaining a “buy” rating. Additionally, Compass Point began coverage of Canaan, issuing a “buy” rating.
In total, six analysts currently rate Canaan as a “buy,” three have assigned a “hold” rating, and one has issued a “sell” rating. According to data from MarketBeat, the consensus rating stands at “Moderate Buy,” with an average target price of $3.68.
Recent Financial Performance
Canaan’s latest quarterly earnings report, released on November 18, 2023, revealed a loss per share of ($0.05), beating analysts’ expectations of ($0.06) by $0.01. The company reported revenues of $21.17 million, exceeding the consensus estimate of $18.26 million. Despite these positive figures, Canaan reported a negative return on equity of 71.85% and a negative net margin of 51.66%.
During the same quarter last year, Canaan had a loss per share of ($0.01). Looking ahead, analysts predict that Canaan will post a loss of ($0.74) for the current fiscal year.
Institutional Investment Activity
Recent changes in institutional ownership further reflect the evolving landscape around Canaan’s stock. Oversea Chinese Banking Corp Ltd acquired a new position in Canaan worth approximately $355,000 in the second quarter. Additionally, Mirae Asset Global ETFs Holdings Ltd. increased its stake by 15.4% in the first quarter, owning 3,941,515 shares valued at around $3,460,000 after acquiring an additional 525,772 shares.
Moreover, Invesco Ltd. made significant moves, boosting its holdings by an astonishing 5,016.8% in the same quarter, resulting in ownership of 7,235,144 shares worth approximately $6,351,000. Other investors, such as GMT Capital Corp and Virtu Financial LLC, also added new positions, contributing to the institutional ownership, which now stands at 70.14% of Canaan’s stock.
As Canaan continues to navigate the competitive landscape of integrated circuit design and bitcoin mining equipment, investors are keeping a close eye on both performance metrics and analyst ratings. The ongoing updates from financial analysts indicate a cautious optimism about the company’s future prospects.
