Cleveland-Cliffs (NYSE:CLF) Stock Price Down 16.5% - What's Next?

Key Points

• Cleveland-Cliffs' stock price fell by 16.5% on Tuesday, dropping to $13.52 with a trading volume significantly below its average, indicating a market downturn.
• Despite the drop, various analysts have issued new price targets: Morgan Stanley raised its target to $10.50, while Goldman Sachs increased theirs to $14.50, reflecting mixed investor sentiment.
• The company's latest earnings report showed a revenue of $4.73 billion and improved losses, but analysts predict a further decrease in earnings per share for the current fiscal year, highlighting ongoing challenges.

Shares of Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) dropped 16.5% on Tuesday . The company traded as low as $13.47 and last traded at $13.52. Approximately 15,205,291 shares changed hands during mid-day trading, a decline of 41% from the average daily volume of 25,697,281 shares. The stock had previously closed at $16.18.

Analysts Set New Price Targets

CLF has been the topic of a number of research reports. Morgan Stanley increased their price objective on Cleveland-Cliffs from $8.00 to $10.50 and gave the company an "equal weight" rating in a report on Tuesday, July 22nd. Weiss Ratings reissued a "sell (d)" rating on shares of Cleveland-Cliffs in a report on Wednesday, October 8th. The Goldman Sachs Group increased their price objective on Cleveland-Cliffs from $12.85 to $14.50 and gave the company a "buy" rating in a report on Thursday, October 9th. Wells Fargo & Company reissued an "underweight" rating and issued a $11.00 price objective on shares of Cleveland-Cliffs in a report on Tuesday. Finally, JPMorgan Chase & Co. increased their price objective on Cleveland-Cliffs from $10.00 to $13.00 and gave the company a "neutral" rating in a report on Monday, October 13th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $12.16.

Cleveland-Cliffs Stock Performance

The stock has a market capitalization of $6.63 billion, a price-to-earnings ratio of -3.95 and a beta of 1.96. The firm has a fifty day moving average of $11.78 and a 200 day moving average of $9.42. The company has a debt-to-equity ratio of 1.28, a current ratio of 2.04 and a quick ratio of 0.61.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last posted its earnings results on Monday, October 20th. The mining company reported ($0.45) EPS for the quarter, topping the consensus estimate of ($0.48) by $0.03. The firm had revenue of $4.73 billion for the quarter, compared to analyst estimates of $4.90 billion. Cleveland-Cliffs had a negative return on equity of 17.97% and a negative net margin of 9.03%.Cleveland-Cliffs's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period last year, the company earned ($0.33) earnings per share. On average, sell-side analysts anticipate that Cleveland-Cliffs Inc. will post -0.79 earnings per share for the current fiscal year.

Institutional Trading of Cleveland-Cliffs

Several institutional investors have recently bought and sold shares of CLF. Maple Rock Capital Partners Inc. acquired a new stake in Cleveland-Cliffs in the second quarter valued at approximately $63,731,000. Norges Bank acquired a new stake in Cleveland-Cliffs in the second quarter valued at approximately $44,120,000. Turiya Advisors Asia Ltd acquired a new stake in Cleveland-Cliffs in the second quarter valued at approximately $39,357,000. State Street Corp grew its holdings in Cleveland-Cliffs by 20.2% in the second quarter. State Street Corp now owns 27,450,442 shares of the mining company's stock valued at $208,623,000 after purchasing an additional 4,603,807 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in Cleveland-Cliffs by 200.4% in the second quarter. BNP Paribas Financial Markets now owns 6,329,414 shares of the mining company's stock valued at $48,104,000 after purchasing an additional 4,222,528 shares during the period. 67.68% of the stock is owned by institutional investors and hedge funds.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc and changed its name to Cleveland-Cliffs Inc in August 2017.

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