Stock Traders Buy Large Volume of Put Options on Canaan (NASDAQ:CAN)

Canaan Inc. Sponsored ADR (NASDAQ:CAN) was the recipient of unusually large options trading on Tuesday. Stock investors acquired 13,218 put options on the company. This represents an increase of 406% compared to the typical volume of 2,613 put options.

Institutional Trading of Canaan

Hedge funds have recently bought and sold shares of the business. SBI Securities Co. Ltd. boosted its stake in Canaan by 155.5% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,698,885 shares of the company’s stock valued at $1,172,000 after purchasing an additional 1,034,040 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Canaan by 52.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 587,451 shares of the company’s stock valued at $516,000 after purchasing an additional 200,869 shares during the last quarter. SG Americas Securities LLC acquired a new position in Canaan during the 1st quarter valued at about $43,000. Finally, Virtu Financial LLC acquired a new position in Canaan during the 4th quarter valued at about $46,000. Institutional investors and hedge funds own 70.14% of the company’s stock.

Canaan Stock Down 14.4%

NASDAQ CAN traded down $0.07 during mid-day trading on Tuesday, hitting $0.41. The company’s stock had a trading volume of 9,849,130 shares, compared to its average volume of 13,024,238. The company’s 50 day simple moving average is $0.48 and its 200 day simple moving average is $0.69. Canaan has a twelve month low of $0.39 and a twelve month high of $2.22. The company has a current ratio of 3.31, a quick ratio of 1.93 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $295.79 million, a price-to-earnings ratio of -0.86 and a beta of 2.65.

Canaan (NASDAQ:CAN) last posted its quarterly earnings results on Tuesday, May 19th. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.06). Canaan had a negative net margin of 39.69% and a negative return on equity of 60.70%. The business had revenue of $62.69 million during the quarter, compared to analyst estimates of $9.52 million. During the same period in the previous year, the business posted ($0.02) EPS. Analysts anticipate that Canaan will post -0.2 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have weighed in on CAN shares. HC Wainwright reiterated a “buy” rating and set a $1.50 price target on shares of Canaan in a report on Wednesday, February 11th. BTIG Research reiterated a “buy” rating and set a $3.00 price target on shares of Canaan in a report on Tuesday. Rosenblatt Securities reiterated a “buy” rating and set a $2.25 price target on shares of Canaan in a report on Monday, March 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Canaan in a report on Monday, April 20th. Finally, Wall Street Zen upgraded Canaan to a “sell” rating in a research note on Saturday, April 18th. Six analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $2.17.

Key Stories Impacting Canaan

Here are the key news stories impacting Canaan this week:

• Positive Sentiment: BTIG Research reaffirmed its Buy rating on Canaan and set a $3.00 price target, implying meaningful upside from current levels. Benzinga report on BTIG rating
• Positive Sentiment: Canaan announced record crypto treasury holdings of 1,807.60 BTC and 3,951.53 ETH, while installed mining computing power rose to about 11 EH/s, showing operational growth and stronger balance-sheet exposure to crypto assets. Canaan Q1 results press release
• Positive Sentiment: The company also won a competitive bid for a Nordic hash-to-heat district heating project, supporting its push into energy-integrated mining infrastructure and alternative revenue opportunities. Nordic hash-to-heat project announcement
• Neutral Sentiment: Management said first-quarter revenue of $62.7 million was in line with guidance, and the company highlighted improved liquidity from subsequent customer collections and lower G&A expense. Canaan Q1 financial results
• Negative Sentiment: The quarter still showed losses, with EPS of ($0.13) versus expectations for ($0.07), and the company’s new second-quarter revenue guidance of $35 million to $45 million came in far below the consensus estimate of about $95.9 million, pressuring sentiment. Zacks earnings miss article
• Negative Sentiment: Unusual options activity also leaned bearish, with heavy buying in put options, suggesting some traders are positioning for further downside.

Canaan Company Profile

Canaan Inc is a China-based technology company specializing in the design and manufacture of high-performance computing hardware for the digital currency and blockchain industry. The company’s core business revolves around application-specific integrated circuit (ASIC) miners, which are purpose-built machines optimized for cryptocurrency mining. By focusing on energy efficiency and processing power, Canaan’s mining rigs aim to deliver competitive hash rates while managing power consumption in large-scale operations.

The flagship product line, known as AvalonMiner, encompasses a range of models tailored to different scales of mining activity, from small-scale hobbyist setups to industrial farms.