Ready to Jump After Recent Trade: Canaan Inc. (CAN)

Canaan Inc. (NASDAQ: CAN) stock jumped 5.37% on Friday to $3.14 against a previous-day closing price of $2.98. With 2.3 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.95 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $3.1500 whereas the lowest price it dropped to was $2.8750. The 52-week range on CAN shows that it touched its highest point at $6.90 and its lowest point at $1.87 during that stretch. It currently has a 1-year price target of $7.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAN was up-trending over the past week, with a rise of 12.14%, but this was up by 46.05% over a month. Three-month performance dropped to -4.56% while six-month performance fell -30.38%. The stock lost -38.91% in the past year, while it has gained 52.43% so far this year. A look at the trailing 12-month EPS for CAN yields 2.07 with Next year EPS estimates of 1.16. For the next quarter, that number is -0.17. This implies an EPS growth rate of 946.70% for this year and 36.50% for next year.

Float and Shares Shorts:

At present, 170.72 million CAN shares are outstanding with a float of 137.37 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.95 million, which was 5.22% higher than short shares on Sep 14, 2022. In addition to Mr. Nangeng Zhang as the firm’s Chairman & CEO, Mr. James Jin Cheng serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 21.65% of CAN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 6.73% of CAN, in contrast to 11.62% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CAN with 3.53% of the stake, The Vanguard Group, Inc. holds 5,258,529 shares worth 5,258,529. A second-largest stockholder of CAN, Invesco Capital Management LLC, holds 3,107,019 shares, controlling over 2.09% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CAN, holding 2,159,057 shares or 1.45% stake. With a 1.55% stake in CAN, the Vanguard Emerging Markets Stock I is the largest stakeholder. A total of 2,306,390 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.46% of CAN stock, is the second-largest Mutual Fund holder. It holds 2,173,624 shares valued at 4.48 million. Amplify Transformational Data Sha holds 1.21% of the stake in CAN, owning 1,802,751 shares worth 3.71 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAN since 4 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAN analysts setting a high price target of $63.35 and a low target of $28.16, the average target price over the next 12 months is $49.27. Based on these targets, CAN could surge 1917.52% to reach the target high and rise by 796.82% to reach the target low. Reaching the average price target will result in a growth of 1469.11% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CAN will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of $6.12 being high and $1.20 being low. For CAN, this leads to a yearly average estimate of $4.74. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Canaan Inc. surprised analysts by -$0.04 when it reported $0.05 EPS against a consensus estimate of $0.09. The surprise factor in the prior quarter was -$0.31. Based on analyst estimates, the high estimate for the next quarter is -$0.84 and the low estimate is -$5.21. The average estimate for the next quarter is thus -$2.46.

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