Cleveland-Cliffs (NYSE:CLF) Stock Price Down 6.9% - Should You Sell?

Key Points

• Cleveland-Cliffs shares fell 6.9% to about $11.06, with trading volume roughly 19% above average. The stock’s consensus analyst rating is “Hold,” with an average price target of $11.86.
• The company slightly exceeded quarterly expectations, reporting adjusted earnings of $(0.20) per share versus estimates of $(0.21), while revenue rose 5.9% year over year to $5.23 billion. Analysts expect a full-year loss of approximately $0.11 per share.
• Investor signals remain mixed: an executive sold more than 214,000 shares, while institutional investors own 67.68% of the stock. Cleveland-Cliffs also carries significant leverage, with a debt-to-equity ratio of 1.32, negative net margin, and negative return on equity.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) shares were down 6.9% on Wednesday . The stock traded as low as $11.14 and last traded at $11.0620. 22,895,182 shares traded hands during trading, an increase of 19% from the average daily volume of 19,272,639 shares. The stock had previously closed at $11.88.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CLF. The Goldman Sachs Group restated a "neutral" rating and set a $10.00 target price on shares of Cleveland-Cliffs in a report on Friday, May 1st. Wells Fargo & Company reissued a "positive" rating on shares of Cleveland-Cliffs in a research report on Friday, July 24th. Citigroup restated a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. 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 report on Wednesday, July 15th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cleveland-Cliffs in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $11.86.

Cleveland-Cliffs Stock Down 7.1%

The stock has a market cap of $6.30 billion, a P/E ratio of -6.83 and a beta of 2.09. The firm has a 50 day simple moving average of $11.15 and a 200-day simple moving average of $10.81. The company has a quick ratio of 0.63, a current ratio of 1.89 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. Cleveland-Cliffs had a negative return on equity of 13.37% and a negative net margin of 4.56%.The business had revenue of $5.23 billion for the quarter, compared to analyst estimates of $5.15 billion. During the same period in the previous year, the firm earned ($0.50) EPS. The firm's revenue was up 5.9% compared to the same quarter last year. On average, equities research analysts forecast that Cleveland-Cliffs Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Activity at Cleveland-Cliffs

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

Institutional Investors Weigh In On Cleveland-Cliffs

A number of institutional investors have recently modified their holdings of CLF. Los Angeles Capital Management LLC bought a new position in shares of Cleveland-Cliffs during the fourth quarter worth approximately $25,000. Center for Financial Planning Inc. increased its holdings in Cleveland-Cliffs by 119.0% in the 1st quarter. Center for Financial Planning Inc. now owns 3,322 shares of the mining company's stock valued at $28,000 after buying an additional 1,805 shares during the period. IFP Advisors Inc raised its position in shares of Cleveland-Cliffs by 117.5% in 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. Johnson Financial Group Inc. acquired a new position in shares of Cleveland-Cliffs in the 2nd quarter valued at approximately $30,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of 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 worth $33,000 after acquiring an additional 1,214 shares during the period. Institutional investors own 67.68% of the company's stock.

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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