Canaan (NASDAQ:CAN) Shares Decline 4.9% - What to Consider

Shares of Canaan Inc. (NASDAQ:CAN) fell by 4.9% on Tuesday, hitting a low of $2.87 before closing at $2.94. The total volume traded was 12,029,761 shares, which is slightly lower than the average of 12,203,361 shares traded in previous sessions. Just a day earlier, the stock had settled at $3.09.

Recent Changes in Analyst Ratings

Several brokerage firms have recently provided updates on Canaan’s stock. B. Riley initiated coverage on the shares with a "buy" rating and a target price set at $2.00 in a report issued on September 18. Nomura Securities upgraded Canaan to a "hold" rating as of August 19. Following that, Rosenblatt Securities raised their price target for Canaan from $3.00 to $4.00 while maintaining a "buy" rating in a report published on December 6. Additionally, HC Wainwright confirmed a "buy" rating for the stock, with a target price of $3.00, in their report from November 21.

Canaan's Stock Performance Metrics

Canaan holds a quick ratio of 1.45 and a current ratio of 2.03, indicating a stable ability to meet its short-term obligations. The debt-to-equity ratio stands at 0.08, reflecting minimal reliance on debt for financing. The company's market capitalization is approximately $839.11 million, and it has a negative PE ratio of -2.14. The stock's 50-day moving average is around $1.63, while the 200-day moving average is approximately $1.23.

Institutional Investors' Activity

In recent months, various institutional investors have altered their positions in Canaan. For instance, Quadrature Capital Ltd significantly increased its stake by 329.4% during the third quarter, now owning 544,976 shares valued at roughly $550,000. OVERSEA CHINESE BANKING Corp Ltd entered into a new position in Canaan, investing about $556,000. Meanwhile, Van ECK Associates Corp bolstered their holding by 55.4% in the second quarter, owning nearly 9.8 million shares valued at around $9.76 million. Commonwealth Equity Services LLC increased its holdings by 20.4%, while Farther Finance Advisors LLC raised its position by 38.6%. Currently, about 70.14% of Canaan's shares are held by institutional investors and hedge funds.

Overview of Canaan Inc.

Canaan Inc. specializes in the research, design, and sale of integrated circuits and final mining equipment products, focusing on the bitcoin mining market in China. The company also engages in the assembly and distribution of mining equipment and spare parts.

Final Thoughts on Canaan's Stock

Before making any investment decisions regarding Canaan, investors might want to consider several factors. While Canaan carries a "Moderate Buy" rating among analysts, many top-rated analysts have identified other stocks they believe are more promising for investors currently.

Canaan, Stocks, Investing