(VIANEWS) – Canaan (NASDAQ:CAN) shares have fallen by 31.65% over 21 trading sessions, from EUR2.78 on August 10th to EUR1.90 at 10:55 EST on Monday morning. This decline follows on the previous session’s downward trend and follows suit with the previous NASDAQ index’s gain of 0.52% to EUR13,832.40 following yesterday’s rise; Canaan’s last closing price was EUR1.89 which represents 52.51% off its 52-week high of EUR3.98.
About Canaan
Canaan Inc is a premier designer and manufacturer of IC final mining equipment for bitcoin mining. Their operations span China, the US, Australia, Kazakhstan, Hong Kong Canada Mainland China Thailand Sweden. Established in 2013 the company’s main office is based out of Singapore where they provide assembly distribution spare parts services for their innovative products.
Yearly Analysis
Canaan’s stock currently trades at EUR1.90, below its 52-week high of EUR3.98 but above its 52-week low of EUR1.83.
Canaan anticipates experiencing negative sales growth of 66.8% this year and then recovering with 51.1% growth the following year.
Canaan currently has an EBITDA ratio of -2.02, which indicates negative earnings prior to accounting for interest, taxes, depreciation and amortization expenses.
Given this information, investors should exercise extreme caution before investing in Canaan’s stock. With negative sales growth and EBITDA figures suggesting financial distress at Canaan, and its current trading price below its 52-week high possibly signalling market sentiment against Canaan; however, its price being above 52-week low suggests market optimism regarding Canaan’s potential growth prospects in future. As such, investors must conduct further investigation of Canaan before making investment decisions.
Technical Analysis
Canaan stock has been experiencing difficulty maintaining its value, with current worth considerably below both its 50-day and 200-day moving averages of EUR2.54 and EUR2.61, indicating an ongoing downward trend over both time periods.
Furthermore, its volume has drastically declined from its average of 3043960; yesterday’s last reported volume was only 272140 representing a decrease of 92.08% – this may contribute to its volatility and instability.
Canaan has experienced historically negative intraday variation averages over the last week, month and quarter; its average volatility peaked at 2.11% for last week, 4.47% for month and 4.19% for quarter.
According to Canaan’s stochastic oscillator, its stock may currently be considered overbought (>=80), indicating potential signs of overspending in the near future.
Canaan appears to be facing difficulties with momentum and volatility, making its stock a potentially risky investment.
Quarter Analysis
Canaan’s latest quarter sales growth is negative 81.3% and its projected next-quarter growth estimate is negative 17.7%; overall Canaan estimates for its current quarter are estimated at negative 285.7% which indicates significant downward momentum; however, their estimate for next-quarter growth suggests positive 26.9% which could provide hope of future success for Canaan.
Canaan has experienced year-on-year quarterly revenue growth that has fallen by 72.6% year over year with twelve trailing months totaling 490.93M – this marks a substantial drop from last year.
Overall, Canaan’s current financial status appears daunting; however, there are signs of hope in its near future. Investors should carefully evaluate this information prior to making any investment decisions.
Equity Analysis
Based on Canaan’s trailing twelve month earnings per share (EPS) is EUR-0.47, indicating it is not producing profits for shareholders at present. Furthermore, Canaan’s return on equity (ROE) over this timeframe stands at negative -13.4% which suggests they are failing to use shareholder’s equity efficiently enough in order to generate profits for themselves.
Investors should proceed with caution when investing in Canaan, as negative EPS and ROE indicators could suggest financial instability or lack of profitability. Before making their decision to invest in Canaan, it may be worthwhile conducting further research on its financials, industry trends, management team and potential positive factors which could mitigate these indicators of negative returns.
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