Market Analysts see Canaan Inc. [CAN] gaining to $5. Time to buy?


Canaan Inc. [NASDAQ: CAN] surged by $0.15 during the normal trading session on Wednesday and reaching a high of $4.45 during the day while it closed the day at $4.43. The company report on June 23, 2022 that Canaan Inc. Announces The Repurchase of Over 4.72 Million Outstanding Warrants for Approximately US$6.61 Million.

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Canaan Inc. (NASDAQ: CAN) (“Canaan” or the “Company”), a leading high-performance computing solutions provider, is pleased to announce that it has entered into agreements with certain warrant holders (the “Warrant Holders”) to repurchase over 4.72 million outstanding warrants (“Warrants”) of the Company for an aggregate purchase price of approximately US$6.61 million. The Warrants were issued by the Company in May 2021 pursuant to (i) certain Securities Purchase Agreement (the “SPA”) between the Company and the purchasers party thereto, dated April 29, 2021, and (ii) certain placement agent agreement between the Company and the placement agents thereto, dated April 29, 2021.

Simultaneously, the parties amended the terms of the SPA in a manner that is expected to provide the Company with more flexibility with respect to future issuances of ADSs, Ordinary Shares or Ordinary Share Equivalents, as defined in the SPA.

Canaan Inc. stock has also gained 16.58% of its value over the past 7 days. However, CAN stock has inclined by 4.48% in the 3 months of the year. Over the past six months meanwhile, it has lost -14.97% and lost -13.98% year-on date.

The market cap for CAN stock reached $837.00 million, with 172.02 million shares outstanding and 166.17 million shares in the current float. Compared to the average trading volume of 3.49M shares, CAN reached a trading volume of 4009061 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Canaan Inc. [CAN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CAN shares is $8.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CAN stock is a recommendation set at 1.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

H.C. Wainwright have made an estimate for Canaan Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 06, 2022. While these analysts kept the previous recommendation, The Benchmark Company raised their target price to Buy. The new note on the price target was released on June 08, 2022, representing the official price target for Canaan Inc. stock. Previously, the target price had yet another raise to $15, while DA Davidson analysts kept a Buy rating on CAN stock.

The Average True Range (ATR) for Canaan Inc. is set at 0.27, with the Price to Sales ratio for CAN stock in the period of the last 12 months amounting to 0.95. The Price to Book ratio for the last quarter was 1.30.

CAN stock trade performance evaluation

Canaan Inc. [CAN] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.58. With this latest performance, CAN shares gained by 40.19% in over the last four-week period, additionally sinking by -14.97% over the last 6 months – not to mention a drop of -21.17% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CAN stock in for the last two-week period is set at 69.78, with the RSI for the last a single of trading hit 78.85, and the three-weeks RSI is set at 62.77 for Canaan Inc. [CAN]. The present Moving Average for the last 50 days of trading for this stock 3.46, while it was recorded at 4.05 for the last single week of trading, and 5.34 for the last 200 days.

Canaan Inc. [CAN]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Canaan Inc. [CAN] shares currently have an operating margin of +36.69 and a Gross Margin at +56.98. Canaan Inc.’s Net Margin is presently recorded at +40.11.

Return on Equity for this stock inclined to 101.89, with Return on Assets sitting at 59.52.

Canaan Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.10 and a Current Ratio set at 2.60.

Canaan Inc. [CAN]: Insider Ownership positions

Positions in Canaan Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 51 institutional holders increased their position in Canaan Inc. [NASDAQ:CAN] by around 5,383,346 shares. Additionally, 35 investors decreased positions by around 3,869,247 shares, while 18 investors held positions by with 13,680,798 shares. The mentioned changes placed institutional holdings at 22,933,391 shares, according to the latest SEC report filing. CAN stock had 26 new institutional investments in for a total of 1,309,581 shares, while 19 institutional investors sold positions of 2,745,877 shares during the same period.