Canaan Inc. (CAN) surged in the current market after announcing its share repurchase program. CAN values at $4.80, gaining more than 38% compared to yesterday’s closing price. The stock closed at $3.46 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.46 million shares. The current market cap of the company is about $829.71 million.
CAN Share Repurchase Program
Canaan Inc. (CAN), on March 16, 2022, announced in a press release that they intend to buy back shares worth around $100 million. The decision was made after the approval from its board of directors. Under the share repurchase program will buy outstanding American depositary shares; each consists of 15 Class A common shares. Starting from March 16, 2022, they will also buy Class A common shares over twenty-four months period.
Under this program, they will buy back shares from time to time. The company is giving back the value to its shareholders, representing its solid balance sheet.
CAN CEO’s Remarks
The contemporary geopolitical tensions, local quarantine measures for COVID-19 control, and macro reasons throughout the capital market have significantly affected our stock performance, according to Canaan Chairman and CEO Nangeng Zhang. To maximize shareholder value, we would prefer to commit additional capital given the Company’s excellent fundamentals and good cash position. We finished the September 2021 share buyback program ahead of time. It shows our faith in the Company’s long-term prospects. We feel we can overcome the hurdles and accomplish more with our hard work and agility.
Financial Highlights
The company recently announced its fiscal 2021 results. The company announced a massive increase in its revenue, representing a 65% increase yoy. CAN record revenue of around RMB 4.9 billion. Its net income in fiscal 2021 was RMB 2 billion.
CAN 2022 Outlook
Net revenue of Q4 2022 for Canaan Inc. (CAN) is forecasted to be in the range of RMB 1.50 billion to RMB 1.60 billion (year-over-year growth of 275% to 300%). These projections are based on Canaan’s current and preliminary market and operating circumstances assessments.
Conclusion
The share repurchase program represents the company’s strong balance sheet. It represents that the company is keen on giving back the value to its shareholders.
