Canaan (NASDAQ:CAN) Trading Down 4.9% - What You Should Know

On Tuesday, shares of Canaan Inc. (NASDAQ:CAN) fell by 4.9%. The stock reached a low of $2.87 before closing the day at $2.94. During the trading session, a total of 12,029,761 shares exchanged hands, reflecting a slight decrease of 1% from the average trading volume of 12,203,361 shares. The previous closing price stood at $3.09.

Recent Analyst Ratings

Several brokerage firms have recently updated their opinions on Canaan. B. Riley started coverage with a "buy" rating and set a target price of $2.00. In contrast, Nomura Securities upgraded its rating to "hold" on August 19. Rosenblatt Securities raised its target price from $3.00 to $4.00 and maintained a "buy" rating as of December 6. Additionally, HC Wainwright confirmed a "buy" rating with a target price of $3.00 on November 21.

Canaan's Financial Performance

Canaan displays a quick ratio of 1.45 and a current ratio of 2.03, indicating a solid liquidity position. The company has a debt-to-equity ratio of 0.08 and a market capitalization of approximately $839.11 million. The price-to-earnings (P/E) ratio is noted at -2.14, with a beta of 3.24, suggesting higher volatility compared to the market. The stock's 50-day moving average stands at $1.63, while the 200-day moving average is recorded at $1.23.

Institutional Investments in Canaan

In recent months, various institutional investors and hedge funds have adjusted their holdings in Canaan. Quadrature Capital Ltd notably increased its stake by 329.4% in the third quarter, acquiring an additional 418,052 shares, which brought its total ownership to 544,976 shares. OVERSEA CHINESE BANKING Corp Ltd also added a new position valued around $556,000. Meanwhile, Van ECK Associates Corp boosted its holdings by 55.4% in the second quarter, currently owning 9,762,972 shares. Commonwealth Equity Services LLC increased its stake by 20.4%, acquiring more shares during the same period. Furthermore, Farther Finance Advisors LLC elevated its position by 38.6%, now owning 109,409 shares. Overall, institutional and hedge fund ownership currently accounts for 70.14% of Canaan's stock.

About Canaan

Canaan Inc. specializes in the research, design, and sale of integrated circuit (IC) products for bitcoin mining and related equipment. The company operates primarily in the People's Republic of China, focusing on the assembly and distribution of mining tools and components.

Conclusion

Investors are questioning whether to hold or sell shares in Canaan following the recent dip in stock price. With analysts divided on the stock's potential, it may be worth considering where your investment strategy aligns regarding Canaan's performance in the market.

Canaan, stocks, market