Wall Street Zen Upgrades Cleveland-Cliffs (NYSE:CLF) to Buy

Key Points

• Wall Street Zen upgraded Cleveland-Cliffs to “buy” from “hold,” though broader analyst sentiment remains mixed: four analysts rate it a buy, six a hold and two a sell, with a consensus target of $13.82.
• Cleveland-Cliffs reported quarterly EPS of $0.28, beating estimates of $0.24, while revenue rose 18.5% year over year to $5.61 billion but fell short of expectations.
• The stock recently traded up 6.6%, supported by an insider purchase of 7,400 shares; however, the company faces uncertainty after Canada ordered it to reconsider planned layoffs at its Stelco Ontario facility.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday, Wall Street Zen reports.

Several other research analysts have also recently weighed in on CLF. Bank of America decreased their target price on Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating for the company in a research note on Thursday, July 9th. The Goldman Sachs Group reiterated a "neutral" rating and set a $13.00 price objective on shares of Cleveland-Cliffs in a research report on Tuesday. Morgan Stanley boosted their target price on Cleveland-Cliffs from $12.50 to $14.00 and gave the stock an "equal weight" rating in a research report on Tuesday. B. Riley Financial raised their target price on shares of Cleveland-Cliffs from $15.00 to $18.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Citigroup reaffirmed a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $13.82.

Cleveland-Cliffs Trading Up 6.6%

Shares of NYSE CLF opened at $13.91 on Friday. Cleveland-Cliffs has a 12-month low of $7.73 and a 12-month high of $15.35. The company has a market cap of $7.94 billion, a price-to-earnings ratio of -16.37, a price-to-earnings-growth ratio of 4.97 and a beta of 2.09. The company has a current ratio of 1.87, a quick ratio of 0.63 and a debt-to-equity ratio of 1.28. The stock's 50 day simple moving average is $12.17 and its 200 day simple moving average is $11.42.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last announced its quarterly earnings results on Monday, October 19th. The mining company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.24 by $0.04. Cleveland-Cliffs had a negative net margin of 2.36% and a negative return on equity of 6.83%. The company had revenue of $5.61 billion for the quarter, compared to analyst estimates of $5.69 billion. During the same quarter last year, the business earned ($0.51) earnings per share. Cleveland-Cliffs's revenue was up 18.5% compared to the same quarter last year. Equities research analysts expect that Cleveland-Cliffs will post 0.12 EPS for the current year.

Insider Buying and Selling at Cleveland-Cliffs

In related news, Director Edilson Camara purchased 7,400 shares of the stock in a transaction on Thursday, October 22nd. The shares were bought at an average price of $13.49 per share, for a total transaction of $99,826.00. Following the completion of the acquisition, the director directly owned 64,717 shares in the company, valued at approximately $873,032.33. This trade represents a 12.91% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.95% of the company's stock.

Hedge Funds Weigh In On Cleveland-Cliffs

Large investors have recently made changes to their positions in the business. Signaturefd LLC lifted its stake in shares of Cleveland-Cliffs by 13.0% in the third quarter. Signaturefd LLC now owns 9,234 shares of the mining company's stock valued at $102,000 after buying an additional 1,059 shares during the period. IFP Advisors Inc raised its position in Cleveland-Cliffs by 39.5% in the second quarter. IFP Advisors Inc now owns 5,127 shares of the mining company's stock worth $48,000 after purchasing an additional 1,453 shares in the last quarter. Baird Financial Group Inc. boosted its holdings in Cleveland-Cliffs by 4.2% during the second quarter. Baird Financial Group Inc. now owns 37,026 shares of the mining company's stock valued at $348,000 after purchasing an additional 1,496 shares in the last quarter. Fifth Third Wealth Advisors LLC lifted its position in shares of Cleveland-Cliffs by 12.8% during the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 13,857 shares of the mining company's stock worth $153,000 after buying an additional 1,567 shares during the period. Finally, Versant Capital Management Inc lifted its holdings in shares of Cleveland-Cliffs by 24.3% during the second quarter. Versant Capital Management Inc now owns 8,243 shares of the mining company's stock valued at $77,000 after acquiring an additional 1,614 shares during the period. Institutional investors and hedge funds own 67.68% of the company's stock.

Key Headlines Impacting Cleveland-Cliffs

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Cleveland-Cliffs’ quarterly earnings exceeded Wall Street expectations, while analysts cited steadier automotive steel demand as a supportive factor for the company’s outlook. Cleveland-Cliffs Surges After Earnings Beat as Auto Steel Demand Steadies
• Positive Sentiment: The stock is leading a broader rally among U.S. steelmakers, suggesting improving sentiment toward domestic steel producers even as a global steel fund declined. Cleveland-Cliffs Surges While Steel Fund Slips
• Positive Sentiment: A Cleveland-Cliffs director purchased 7,400 shares for nearly $100,000, increasing his direct ownership by about 13%. The insider buying may signal confidence in the company’s valuation and prospects. SEC Insider Transaction Filing
• Positive Sentiment: The consensus price target reportedly increased 10.73% to $14.38, reflecting somewhat improved expectations following the recent results. Cleveland-Cliffs Consensus Price Target Increased
• Neutral Sentiment: Analyst views remain mixed. JPMorgan raised its target to $13 but maintained a neutral rating, indicating limited upside at recent levels, while other analysts appear more constructive. JPMorgan Cleveland-Cliffs Rating
• Negative Sentiment: Canada has given Cleveland-Cliffs 15 days to reverse planned layoffs at its Stelco Ontario facility or potentially face sanctions, including a forced divestiture. The dispute creates regulatory, labor and operational uncertainty. Canada Gives Cleveland-Cliffs 15 Days to Reverse Planned Job Cuts

About Cleveland-Cliffs

Cleveland-Cliffs Inc is an integrated North American steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, from mining and processing iron ore to producing and distributing finished steel products. Its operations include iron ore mines and pelletizing facilities, steel mills, finishing plants, and related manufacturing and distribution assets.

The company produces carbon steel, stainless steel, electrical steel, and other specialty products, including hot-rolled, cold-rolled, and galvanized sheet steel.

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