Canaan Inc. (NASDAQ:CAN) Share Price Dropped 17% Last Week; individual investors would not be happy

Every investor in Canaan Inc. (NASDAQ:CAN) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 50% ownership. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

While individual investors’ holdings took a hit after prices fell 17% last week, insiders with their 33% also suffered.

Let’s dive deeper into each Canaan owner type, starting with the table below.

Check out our latest analysis for Canaan

NasdaqGM: CAN Ownership Breakdown April 9, 2022

What does institutional ownership tell us about Canaan?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We see that Canaan has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Canaan’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqGM:CAN Earnings and Revenue Growth April 9, 2022

Hedge funds don’t have a lot of shares in Canaan. With a 12% stake, CEO Nangeng Zhang is the largest shareholder. In comparison, the second and third shareholders hold approximately 7.0% and 5.4% of the shares.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Property of Canaan initiates

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

It appears that insiders own a large share of Canaan Inc. Insiders own a $265 million stake in this $811 million company. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.

General public property

The general public, including retail investors, owns 50% of the company’s capital and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 2 warning signs for Canaan you should be aware.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Karen J. Nelson