Free Trial

Cleveland-Cliffs Stock Eyes 7th-Straight Loss After Bear Note

Cleveland-Cliffs Inc (NYSE:CLF) stock is down 3.5% to trade at $15.12 at last check, after J.P. Morgan Securities downgraded it to "neutral" from "overweight," and cut its price objective to $17 from $23. The analyst in coverage cited weak fundamentals, rising capital expenditure needs, and lack of near-term growth.

The brokerage bunch already leaned bearish on Cleveland-Cliffs stock coming into today, with eight of the 11 firms calling it a tepid "hold" or worse. Short sellers are firmly in control as well, with the 33.44 million shares sold short making up 7.2% of the equity's total available float.

The equity earlier slipped to its lowest level so far this year, and is on track for its seventh-straight loss. The 20-day moving average rejected rallies in May and June, contributing to CLF's 25.7% year-to-date deficit.

Drilling down to today's options activity, 4,873 puts have crossed the tape so far, which is triple the volume typically seen at this point. The most active contract is the weekly 6/14 12.50-strike put, where new positions are being sold to open.

Options are looking affordable, too. This is per the stock's Schaeffer's Volatility Index (SVI) of 34%, which ranks in the 15th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.

 

Where should you invest $1,000 right now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

5G Stocks: The Path Forward is Profitable Cover

Click the link below and we'll send you MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Robotics Stock Rockets on NVIDIA Investment
How to Trade After Hours Like a Pro
Opportunities Arise as Stock Market Rotates from Big Tech

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines