(VIANEWS) – Canaan (NASDAQ: CAN) shares have made significant strides since their initial public offering (IPO) on April 2, 2018 by increasing 12.87% to EUR1.93, continuing their uptrend from the prior session and adding to an upward trend seen at 13:35 EST on Tuesday. Meanwhile, NASDAQ is up 0.288% at EUR13,054.68, showing positive trading activity so far; Canaan’s last closing price was EUR1.71 which is 57.04% below its 52-week high of EUR3.98.
About Canaan
Canaan Inc. is an industry leader when it comes to integrated circuit (IC) products for bitcoin mining and related components. Headquartered in Singapore, Canaan designs and sells final mining equipment products, assembles spare parts for mining equipment as well as provides spare part distribution worldwide – its operations stretching across United States, Australia, Kazakhstan Hong Kong Canada Mainland China Thailand Sweden internationally as major players within global mining equipment market since 2013 when Canaan Inc was first founded as well.
Yearly Analysis
Canaan’s stock is currently trading at EUR1.93, significantly below its 52-week high of EUR3.98 but higher than its 52-week low of EUR1.64. This indicates a significant drop in value since last year.
Canaan anticipates negative 66.4% sales growth this year; however, 51.1% growth in next year points towards potential recovery.
Canaan’s EBITDA stands at -2.47, indicating negative earnings before interest, taxes, depreciation and amortization – this indicates significant losses and indicates the company is currently not profitable.
Overall, investors should exercise extreme caution when considering an investment in Canaan’s stock. While the anticipated sales growth for next year may be positive, the current negative EBITDA and significant decline in sales growth this year should cause concern to any investor considering making this choice. It’s essential that investors carefully evaluate all of this information prior to making their final investment decision.
Technical Analysis
Canaan Inc. (NASDAQ: CAN), a leading blockchain technology company, has experienced a sharp drop in stock prices recently – currently falling below both its 50-day and 200-day moving averages, which stand respectively at EUR1.95 and EUR2.50 respectively.
Canaan has seen an increase of 78.911% in trading volume to 3,747,319 over its average of 2,094,480; this could indicate increased interest in their stock.
Canaan’s volatility has fluctuated over the last several weeks and months, with average intraday variation averages for last week, month, and quarter being negative 4.41%, negative 0.34% and positive 3.31% respectively; Canaan experienced its highest amplitude of average volatility last week at 4.41%, month 2.89% and quarter 3.31%.
Furthermore, Canaan’s stock has been marked as overbought (>=80) according to the stochastic oscillator indicator – potentially signalling that prices could correct in the near future.
Overall, Canaan stock prices have fluctuated widely; therefore it is essential for investors to carefully monitor its fundamentals and future prospects before making investment decisions. They may wish to conduct further research before making any definitive investment choices.
Quarter Analysis
Based on available data, Canaan’s financial performance has been poor in recent quarters, with sales growth rates of -81.1 % for this quarter and 16.88 percent expected for next. This suggests that Canaan’s revenue is declining, which may cause concern for investors.
However, growth estimates for the current and next quarters indicate that the company may be turning around. The growth estimate for this quarter is negative 285.7% – meaning revenue should decrease less quickly than it did during its prior quarter – while next quarter’s estimate stands at 26.9% which indicates revenue increase.
Note that these growth estimates may not reflect the true performance of your company. Furthermore, year-on-year quarterly revenue growth declined 91.8% over the last year suggesting the company may have struggled to increase revenue over this timeframe.
Overall, investors should use caution when considering an investment in Canaan, given its negative sales growth and declining revenues. However, growth estimates for current and next quarters suggest the company could be stabilizing, potentially yielding positive returns in the future.
Equity Analysis
Based on available information, Canaan’s trailing twelve months EPS stands at EUR-0.47 indicating it is currently making a loss.
Return on Equity (ROE) of the company over its twelve trailing months was negative -24.89%, which indicates inefficient use of shareholder equity to produce profits and generate returns. A negative ROE implies that profits aren’t being generated efficiently enough and shareholders’ capital isn’t being utilized optimally to generate returns for shareholders.
Overall, these financial metrics suggest that Canaan is currently facing challenges regarding profitability and return on equity (ROE). Investors should proceed with caution when making investment decisions regarding this company and should carefully evaluate all other relevant factors prior to committing funds.
More news about Canaan (CAN).
