Volatility Is Your Friend: Canaan Inc ADR (CAN) Is Hot Again

Canaan Inc ADR (NASDAQ:CAN) does about 10.51M shares in volume on a normal day but saw 2835281 shares change hands in Monday trading. The company now has a market cap of 283.89M USD. Its current market price is $1.07, marking an increase of 3.88% compared to the previous close of $1.03. The 52 week high reached by this stock is $3.50 whilst the lowest price level in 52 weeks is $0.75.

Canaan Inc ADR (CAN) has a 20-day trading average at $1.0360 and the current price is -69.43% off the 52-week high compared with 42.67% distance from its 52-week low. The 50-day simple moving average of the closing price is $1.0474 and its 200-day simple moving average is $1.6112. If we look at the stock’s price movements over the week, volatility stands at 9.07%, which increases to 11.29% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 53.11 to suggest the stock is neutral.

The consensus objective for the share price is $3.00, suggesting that the stock has a potential upside of 64.33% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on July 06, 2022 when H.C. Wainwright initiated the stock to “Buy” and issued a price target of $5. DA Davidson initiated its price target at $15.

Canaan Inc ADR (CAN) stock is up 7.45% over the week and 15.71% over the past month. Its price is -53.68% year-to-date and -47.55% over the past year.

The stock last released its quarterly earnings report for quarter ended 12/31/2023, with the company’s earnings per share (EPS) of -0.48 below consensus estimates by -0.27. The company’s next earnings report forecasts estimating quarterly EPS at -0.36 and -0.06 for whole year. Expected sales for next quarter are $51.9M, which analysts say will come at $225M for the current fiscal year and next year at $897.07M. In addition, estimates put the company’s current quarterly revenue at an average of $35.09M.

To reach the target analysts have set, the stock logically needs to grow 64.33 percent from here.

The company has a return on investment of -89.20% and return on equity of -76.92%. The beta has a value of 3.12. Price to book ratio is 0.73 and price to sales ratio is 1.48.