(VIANEWS) – Canaan Inc. (NASDAQ: CAN) experienced an abrupt decrease of 30.53% over just 21 sessions from EUR2.62 on August 14th to EUR1.82 as of 14:05 EST Wednesday; this decline accompanied three consecutive losses and stands 53.52% below its 52-week high of EUR3.98.
NASDAQ index was up 0.5% at EUR13,842.82, continuing its upward trajectory after last session’s decline.
Canaan’s stock price has seen an abrupt decrease recently for unknown reasons. Investors could be concerned with financials, operations or industry outlook at Canaan. Therefore it is vital to stay abreast of developments surrounding Canaan in order to make informed investment decisions.
About Canaan
Canaan Inc. specializes in the design and sale of innovative integrated circuit products specifically tailored for bitcoin mining. Operating out of locations including China, US, Australia, Kazakhstan, Hong Kong Canada Mainland China Thailand Sweden internationally Canaan Inc offers an expansive range of mining equipment spare parts services since 2013 when their Singapore headquarters were first established. Canaan Inc is now recognized as an industry leader.
Yearly Analysis
Canaan’s stock is trading below its 52-week low, which could indicate that investors perceive them as underperforming. Anticipated sales growth for this year is currently projected at negative 66.8% but should return to positive territory in 2017. Growth projections anticipate rebounding to 51.1% next year.
Canaan’s EBITDA currently stands at -2.02, which indicates it is incurring losses and not producing enough profit to cover its expenses.
Canaan’s financial performance is currently weak, so investors should exercise extreme caution before considering investing in its stock. Care should be taken when analyzing Canaan’s finances, management capabilities and growth prospects prior to making any definitive investment decisions.
Technical Analysis
Canaan Inc. (NASDAQ: CAN) has been struggling to retain its value as it trades below both of its 50-day and 200-day moving averages, currently sitting at EUR1.99 which is significantly below both averages – 50 day at EUR2.54 and 200 at EUR2.61.
Additionally, the stock’s volume has been decreasing steadily; today’s reported volume of 961,140 represents a decline of 68.56% below its average volume of 3,018,390; which may signal lack of investor interest in its shares.
Canaan’s volatility has fluctuated, with an intraday variation average over the last week, month and quarter being negative 0.35%, negative 2.14% and positive 4.15% respectively. Canaan stock’s highest average weekly, monthly and quarter amplitude was 0.71% in each case (0.71% last week, 4.254% in month one and 4.15% quarter two).
Based on its stochastic oscillator, Canaan’s stock appears to be overbought (>=80), suggesting a potential price correction may be imminent. Therefore, Canaan’s current situation is cause for alarm among investors.
Quarter Analysis
According to available data, Canaan’s financial performance has been inadequate and investors should exercise extreme caution before investing in it.
Negative sales growth estimates for both the current and next quarters show a marked decrease in sales growth, suggesting further deterioration. Furthermore, growth estimates for this quarter were negative 285.7% which might suggest further problems ahead. But positive 26.9% estimates for next quarter provide some hope of future recovery.
Concerning revenue growth, the 72.6% year-on-year drop in quarterly revenue growth is cause for alarm, as is its four ninety nine million trailing revenue figure which also shows concern.
Canaan’s current financial position is precarious, with negative sales growth and revenue decline. Although positive growth forecast for next quarter provides some optimism, investors should conduct an in-depth examination of Canaan’s fundamentals such as business model, competitive landscape, management team and core competencies before making investment decisions.
Equity Analysis
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A trailing 12-month earnings per share figure of EUR-0.46 suggests that this company has sustained losses recently. This may cause investors to be concerned that it may not be producing profits for shareholders.
Additionally, the company’s return on equity of -13.4% indicates that its operations are not currently profitable and is therefore a negative signal to investors.
Overall, these financial metrics suggest that Canaan is currently experiencing financial issues and may not present an appealing investment opportunity. Investors should carefully consider this information prior to making any definitive investment decisions.
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