Cleveland-Cliffs Inc. (NYSE:CLF) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analysts have a consensus recommendation of "Hold" on Cleveland-Cliffs from 11 firms (2 sell, 7 hold, 2 buy) with an average 12‑month price target of about $12.69.
• The company beat EPS estimates (reported -$0.43 vs. -$0.62 expected) but missed revenue ($4.31B vs. $4.60B), remains unprofitable with a negative net margin and ROE, and the stock trades around $9.45 within a 52‑week range of $5.63–$16.70.
• Significant insider moves: the CEO sold 3,000,000 shares at an average of $12.42 ($37.26M), while a director bought 19,700 shares at $10.13 (an 88.4% increase in their ownership); insiders own 0.95% and institutions own ~67.7% of the stock.

Shares of Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) have earned a consensus recommendation of "Hold" from the eleven research firms that are currently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and two have issued a buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $12.6920.

A number of equities analysts have weighed in on the company. KeyCorp started coverage on shares of Cleveland-Cliffs in a research report on Wednesday, March 25th. They issued a "sector weight" rating for the company. Glj Research reissued a "sell" rating and set a $9.42 price target on shares of Cleveland-Cliffs in a report on Monday, March 16th. The Goldman Sachs Group began coverage on Cleveland-Cliffs in a report on Wednesday, April 1st. They issued a "neutral" rating and a $9.00 price objective for the company. Morgan Stanley upgraded Cleveland-Cliffs from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $12.80 to $17.00 in a research report on Friday, January 9th. Finally, Citigroup increased their target price on Cleveland-Cliffs from $11.00 to $13.00 and gave the company a "neutral" rating in a report on Monday, February 9th.

Cleveland-Cliffs Price Performance

CLF stock opened at $9.45 on Wednesday. Cleveland-Cliffs has a 52-week low of $5.63 and a 52-week high of $16.70. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.50 and a current ratio of 1.95. The firm has a market capitalization of $5.39 billion, a price-to-earnings ratio of -3.24 and a beta of 1.91. The firm has a 50 day moving average price of $9.89 and a 200-day moving average price of $11.86.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last issued its earnings results on Monday, February 9th. The mining company reported ($0.43) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.62) by $0.19. The business had revenue of $4.31 billion during the quarter, compared to analysts' expectations of $4.60 billion. Cleveland-Cliffs had a negative net margin of 7.91% and a negative return on equity of 18.94%. The business's revenue for the quarter was down .3% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.68) earnings per share. Equities research analysts forecast that Cleveland-Cliffs will post -0.79 EPS for the current fiscal year.

Insider Transactions at Cleveland-Cliffs

In other Cleveland-Cliffs news, CEO Lourenco Goncalves sold 3,000,000 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $12.42, for a total transaction of $37,260,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Edilson Camara purchased 19,700 shares of Cleveland-Cliffs stock in a transaction on Friday, February 13th. The stock was bought at an average price of $10.13 per share, with a total value of $199,561.00. Following the transaction, the director owned 41,983 shares of the company's stock, valued at approximately $425,287.79. This represents a 88.41% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.95% of the company's stock.

Hedge Funds Weigh In On Cleveland-Cliffs

A number of hedge funds have recently modified their holdings of the company. Strengthening Families & Communities LLC grew its position in shares of Cleveland-Cliffs by 4,315.6% during the third quarter. Strengthening Families & Communities LLC now owns 1,987 shares of the mining company's stock worth $25,000 after purchasing an additional 1,942 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in Cleveland-Cliffs in the 4th quarter worth approximately $25,000. IFP Advisors Inc grew its holdings in Cleveland-Cliffs by 117.5% during the 4th quarter. IFP Advisors Inc now owns 2,221 shares of the mining company's stock valued at $29,000 after buying an additional 1,200 shares in the last quarter. CIBC Private Wealth Group LLC raised its position in shares of Cleveland-Cliffs by 306.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 2,461 shares of the mining company's stock valued at $33,000 after buying an additional 1,855 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its position in shares of Cleveland-Cliffs by 94.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,505 shares of the mining company's stock valued at $33,000 after buying an additional 1,214 shares during the last quarter. 67.68% of the stock is currently owned by institutional investors.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.

The company's integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.

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