(VIANEWS) – Canaan (NASDAQ: CAN) shares fell 12.97% at 12:35 EST Thursday morning to EUR1.61, reversing their prior upward trend. Meanwhile, NASDAQ was up 0.31% and EUR15,996.77 had decreased following prior downward movement; so far Canaan stock was up 0.566% on Thursday alone.
Canaan last closed at EUR1.85, 47.14% below its 52-week high of EUR3.50. Its 50-day moving average stands at EUR1.75 while the 200-day average stands at EUR3.15.
Trading volume for this security closed at 3,458,580 shares, far exceeding both its 50-day and 200-day average volumes of 2,125,118 shares respectively. BNK Invest provides information that may be delayed up to 20 minutes.
About Canaan
Canaan Inc. is an innovative producer of integrated circuit (IC) mining equipment, specializing in design, research, and sales of products used for bitcoin mining. Based out of Singapore since 2013 with operations throughout China as well as internationally (United States, Australia, Kazakhstan Hong Kong Canada Thailand Sweden etc) Canaan has established itself as an integral player in this rapidly developing sector of cryptocurrency mining. Since 2013 Canaan Inc has strived to achieve innovation and excellence when designing its equipment to facilitate cryptocurrency mining.
Yearly Analysis
Canaan’s stock is currently trading at EUR1.61, below its 52-week high of EUR3.50 but higher than its 52-week low of EUR1.13. According to available information, Canaan’s sales growth this year is projected at minus 65.9% while expected sales growth for next year should rebound to 12.5%. Nonetheless, Canaan is currently showing negative EBITDA (-2.22) suggesting it may not be profitable in the short-term, yet monitoring its financial performance over the coming quarters may reveal potential opportunities that may help turn around operations and improve bottom lines and improve bottom lines overall. Investors should exercise extreme caution before making any definitive investment decisions regarding Canaan or its stock investments.
Technical Analysis
Canaan stock has experienced an alarming decline over recent weeks, falling well below both its 50-day and 200-day moving averages. Canaan’s last reported volume was 18231827 which is 18.71% less than its average volume of 22428600. Canaan saw its volume decrease due to decreased investor enthusiasm. Volatility for Canaan over the last week, month and quarter averaged out as negative 5.31%; positive 0.13% and 8.17% were respectively recorded as intraday variation averages. Canaan experienced its highest average weekly volatility at 12.01% over the last week, 8.81% in month one and 8.17% over quarter two. Canaan’s stochastic oscillator, an indicator used to gauge overbought and oversold conditions, shows it currently as being considered overbought at around 80 points (indicative of overbought conditions).
Quarter Analysis
Canaan’s current sales growth is negative 33.6% – reflecting an estimated decrease since last quarter’s figure – however their estimates for growth estimates for both this and future quarters suggest sales may start increasing again soon.
Concerning revenue growth, year-on-year quarterly revenue growth has declined by 75.1% year over year to 160.89M for twelve trailing months. While investors may find this decline disconcerting, it is crucial that investors evaluate company estimates of future projections.
Canaan’s sales growth appears to be slowly decreasing over the short term; however, according to its estimated growth estimates, growth could rebound in future quarters. Investors should carefully assess revenue growth and other financial metrics before making investment decisions about Canaan.
Equity Analysis
Canaan’s trailing twelve months EPS stands at EUR-2.41, signalling to potential investors that the company’s profits are negative and warranting further investigation. Furthermore, its return on equity (ROE) for these twelve trailing months stands at negative -53.23% which suggests that profits aren’t being generated effectively and they may be struggling financially.
Financial metrics and other factors must be carefully evaluated when evaluating Canaan as an investment opportunity. Additional research should also be performed, including an in-depth examination of Canaan’s financial statements and industry trends for an informed investment decision.
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