Cleveland-Cliffs (NYSE:CLF) Shares Gap Up - Here's Why

Key Points

• Cleveland‑Cliffs shares gapped up Monday, opening at $10.32 vs. a $9.76 close and trading around $10.41 (up roughly 8.5%) on about 7.99 million shares.
• The company beat quarterly estimates with EPS of -$0.40 vs. -$0.44 expected and revenue of $4.92 billion, but remains unprofitable with negative margins and analysts expect full‑year EPS around -$0.42.
• Analyst sentiment is mixed to negative — MarketBeat shows a consensus Reduce rating and an average target of $11.66 after several target cuts and revisions — while insiders made offsetting moves (a director bought 19,700 shares and the COO sold 200,000) and institutions own ~67.7% of the stock.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $9.76, but opened at $10.32. Cleveland-Cliffs shares last traded at $10.4140, with a volume of 7,990,819 shares.

Wall Street Analyst Weigh In

A number of brokerages recently commented on CLF. KeyCorp began coverage on Cleveland-Cliffs in a research note on Wednesday, March 25th. They set a "sector weight" rating for the company. JPMorgan Chase & Co. decreased their price objective on Cleveland-Cliffs from $13.00 to $10.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Wells Fargo & Company decreased their target price on Cleveland-Cliffs from $12.00 to $9.00 and set an "equal weight" rating for the company in a research note on Thursday, March 19th. Citigroup boosted their target price on Cleveland-Cliffs from $11.00 to $13.00 and gave the company a "neutral" rating in a research note on Monday, February 9th. Finally, Morgan Stanley decreased their target price on Cleveland-Cliffs from $16.80 to $12.00 and set an "overweight" rating for the company in a research note on Tuesday, April 21st. One equities research analyst has 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. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $11.66.

Cleveland-Cliffs Trading Up 8.5%

The company has a debt-to-equity ratio of 1.29, a current ratio of 2.02 and a quick ratio of 0.64. The stock has a market capitalization of $6.04 billion, a price-to-earnings ratio of -4.53 and a beta of 1.91. The business has a 50 day simple moving average of $9.40 and a 200-day simple moving average of $11.67.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last posted its earnings results on Monday, April 20th. The mining company reported ($0.40) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.44) by $0.04. The firm had revenue of $4.92 billion during the quarter, compared to analysts' expectations of $4.84 billion. Cleveland-Cliffs had a negative return on equity of 15.48% and a negative net margin of 6.42%.The company's revenue was up 6.3% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.92) earnings per share. As a group, equities analysts expect that Cleveland-Cliffs Inc. will post -0.42 earnings per share for the current year.

Insiders Place Their Bets

In other Cleveland-Cliffs news, Director Edilson Camara acquired 19,700 shares of the company's stock in a transaction dated Friday, February 13th. The shares were bought at an average cost of $10.13 per share, with a total value of $199,561.00. Following the purchase, the director directly owned 41,983 shares of the company's stock, valued at $425,287.79. This trade represents a 88.41% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Clifford T. Smith sold 200,000 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $10.46, for a total value of $2,092,000.00. Following the completion of the sale, the chief operating officer directly owned 560,529 shares of the company's stock, valued at approximately $5,863,133.34. This trade represents a 26.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.95% of the company's stock.

Institutional Investors Weigh In On Cleveland-Cliffs

Several large investors have recently added to or reduced their stakes in CLF. Strengthening Families & Communities LLC increased its holdings in shares of Cleveland-Cliffs by 4,315.6% in the third quarter. Strengthening Families & Communities LLC now owns 1,987 shares of the mining company's stock worth $25,000 after buying an additional 1,942 shares during the period. Los Angeles Capital Management LLC purchased a new position in Cleveland-Cliffs during the 4th quarter valued at about $25,000. IFP Advisors Inc increased 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 purchasing an additional 1,200 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in Cleveland-Cliffs by 94.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 2,505 shares of the mining company's stock valued at $33,000 after purchasing an additional 1,214 shares during the period. Finally, CIBC Private Wealth Group LLC increased 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 period. Institutional investors own 67.68% of the company's stock.

About Cleveland-Cliffs

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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