Cleveland-Cliffs (NYSE:CLF) Shares Gap Up Following Analyst Upgrade

Key Points

• Cleveland-Cliffs shares rose 5.1%, opening at $11.92 after Wells Fargo raised its price target from $11.00 to $12.00, though it maintained an “equal weight” rating.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $11.96. Targets range from $10.00 at JPMorgan to $15.60 at GLJ Research.
• The company slightly beat quarterly EPS expectations and reported 5.9% year-over-year revenue growth, but remains unprofitable, with a negative net margin and return on equity. An executive also sold 214,308 shares, reducing his direct ownership by 53.73%.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) gapped up before the market opened on Monday after Wells Fargo & Company raised their price target on the stock from $11.00 to $12.00. The stock had previously closed at $11.27, but opened at $11.92. Wells Fargo & Company currently has an equal weight rating on the stock. Cleveland-Cliffs shares last traded at $11.9710, with a volume of 4,676,155 shares traded.

Several other brokerages also recently commented on CLF. Morgan Stanley reiterated an "equal weight" rating and set a $12.50 target price (up from $12.00) on shares of Cleveland-Cliffs in a research note on Monday, June 22nd. JPMorgan Chase & Co. dropped their price target on Cleveland-Cliffs from $13.00 to $10.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 15th. Bank of America cut their price target on Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating for the company in a report on Thursday, July 9th. Glj Research raised shares of Cleveland-Cliffs from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $15.01 to $15.60 in a research report on Friday, July 24th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Cleveland-Cliffs in a report on Tuesday, July 21st. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $11.96.

Insider Buying and Selling at Cleveland-Cliffs

In related news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $13.41, for a total transaction of $2,873,870.28. Following the transaction, the executive vice president directly owned 184,542 shares of the company's stock, valued at approximately $2,474,708.22. This trade represents a 53.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.95% of the company's stock.

Institutional Trading of Cleveland-Cliffs

Large investors have recently made changes to their positions in the company. California State Teachers Retirement System boosted its holdings in shares of Cleveland-Cliffs by 838.3% in the 2nd quarter. California State Teachers Retirement System now owns 6,213,316 shares of the mining company's stock valued at $58,343,000 after purchasing an additional 5,551,136 shares in the last quarter. Readystate Asset Management LP increased its stake in shares of Cleveland-Cliffs by 160.8% in the 2nd quarter. Readystate Asset Management LP now owns 549,184 shares of the mining company's stock valued at $5,157,000 after purchasing an additional 338,608 shares during the last quarter. AlphaGrep UK Ltd acquired a new position in shares of Cleveland-Cliffs during the 2nd quarter worth $462,000. MOR Wealth Management LLC acquired a new position in shares of Cleveland-Cliffs during the 2nd quarter worth $238,000. Finally, Three Seasons Wealth LLC bought a new stake in shares of Cleveland-Cliffs during the 2nd quarter worth $101,000. Institutional investors and hedge funds own 67.68% of the company's stock.

Cleveland-Cliffs Trading Up 5.1%

The firm has a 50-day moving average of $11.02 and a two-hundred day moving average of $10.75. The firm has a market capitalization of $6.76 billion, a P/E ratio of -7.36 and a beta of 2.09. The company has a current ratio of 1.89, a quick ratio of 0.63 and a debt-to-equity ratio of 1.32.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last posted its earnings results on Thursday, July 23rd. The mining company reported ($0.20) earnings per share for the quarter, topping analysts' consensus estimates of ($0.21) by $0.01. The firm had revenue of $5.23 billion for the quarter, compared to analysts' expectations of $5.15 billion. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The company's revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.50) earnings per share. On average, analysts anticipate that Cleveland-Cliffs Inc. will post -0.11 EPS for the current year.

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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