On March 25, Canaan Inc. (CAN) stock continued to slide down in the premarket while it had been bullish for over a week. At the time of writing, the stock was down by 9.15% in the premarket today. It seems the stock is under corrections after a continued uptrend since the company announced a share repurchase program on March 16, 2022.
CAN entered a downtrend in yesterday’s regular session as it suffered a decline of 1.07%. At the close of the regular session, the stock had a value of $6.45 while the volume of the share exchanged was 8.84 million. In the premarket today, the stock was trading at a price of $5.86 per share, at the last check.
The high-performance computing solutions provider for efficient complex problems, Canaan Inc. is based in China. Currently, the company has a market capitalization of $1.11 billion with its 157.95 million outstanding shares.
What is Happening with CAN?
On March 14, CAN plunged down to a new low of $3.10 due to proposed regulations on the crypto mining sector. Following the new low, the stock rebounded the next day as investors began to buy the dip. The bullish trend was then supported and continued by the company’s announcement of a $100 million share buy-back plan and company updates on March 16. Thus, the stock continued to gain on the news till March 23. The stock being long due for corrections, finally succumbed to it and has since continued the downfall into today’s premarket.
So far 2022 has proven very lucky and fruitful for CAN as it stands on a year-to-date gain of 25.24%. Comparatively, the stock suffered a decline of 62.93% in the past year.
Share Repurchase Program
On March 16, the company announced the authorization of a share repurchase program by its board of directors. Starting from the date of the announcement, the company may purchase up to US$100 million worth of its ADSs and/or Class A ordinary shares. CAN’s American Depository shares represent 15 Class A ordinary shares each. Moreover, funded from the existing cash balance, the share repurchase program will extend over 24 months period starting from March 16, 2022.
CAN’s Fiscal 2021 Highlights
As per the unaudited financial results for 2021, CAN had total net revenues of RMB4,986.7 million with a gross profit of RMB2,850.7 million.
Furthermore, the non-GAAP adjusted net income was RMB2,301.6 million in 2021 against a net loss in 2020.