Wall Street Zen has upgraded shares of Canaan (NASDAQ: CAN) from a sell rating to a hold rating, according to a research note released on Saturday. This change reflects a shift in sentiment towards the company’s stock, which has been under scrutiny from various analysts.
Recent Analyst Ratings and Consensus
Several other equities research analysts have also shared their perspectives on Canaan. Rosenblatt Securities reaffirmed a “buy” rating and set a target price of $4.00 per share in a report published on Wednesday. Conversely, Weiss Ratings maintained a “sell (d-)” rating on October 8, while BTIG Research continued their “buy” stance with an increased target price of $8.00 on October 14. B. Riley adjusted its target price from $3.00 to $2.50, still rating the stock as a buy.
The coverage of Canaan has also expanded, with Compass Point initiating coverage in mid-September, issuing a buy rating. Currently, six analysts have rated the stock as a buy, three as hold, and one as sell. According to data from MarketBeat, Canaan holds a consensus rating of “Moderate Buy” with an average target price of $3.68.
Financial Performance and Future Guidance
Canaan recently reported its quarterly earnings on November 18, revealing an earnings per share (EPS) of ($0.05). This result surpassed analysts’ consensus estimates of ($0.06) by $0.01. The company generated $21.17 million in revenue during the quarter, significantly exceeding the expected $18.26 million. Despite these positive indicators, Canaan reported a negative return on equity of 71.85% and a negative net margin of 51.66%.
In the same quarter last year, Canaan posted an EPS of ($0.01). Looking ahead, the company has set its guidance for Q4 2025 at EPS. Analysts anticipate that Canaan will report an EPS of ($0.74) for the current fiscal year.
Institutional Investor Activity
Recent activity among institutional investors has further influenced Canaan’s stock dynamics. Oversea Chinese Banking Corp Ltd acquired a new position in Canaan during the second quarter, investing approximately $355,000. Additionally, Mirae Asset Global ETFs Holdings Ltd. increased its holdings by 15.4% in the first quarter, owning 3,941,515 shares valued at $3,460,000 after acquiring an additional 525,772 shares.
Invesco Ltd. made significant moves, expanding its holdings by an impressive 5,016.8% during the same period, now owning 7,235,144 shares worth $6,351,000 after purchasing an additional 7,093,743 shares. Other hedge funds and institutional investors collectively own 70.14% of Canaan’s stock.
Canaan Inc. focuses on the research, design, and sale of integrated circuit (IC) final mining equipment products, primarily for bitcoin mining, and operates in the People’s Republic of China. The company also engages in the assembly and distribution of mining equipment and spare parts.
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