Cleveland-Cliffs (NYSE:CLF) Stock Price Up 8.2% - Time to Buy?

Key Points

• Cleveland-Cliffs shares rose 8.2% to $11.62 in Friday trading, although volume was 86% below the average session level.
• Analyst sentiment remains mixed, with two Buy, seven Hold, and two Sell ratings; the consensus is Hold with an average price target of $11.86.
• The company slightly exceeded quarterly earnings and revenue expectations, but it remains unprofitable, with negative margins and return on equity. An executive also sold 214,308 shares, reducing his ownership by 53.7%.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report)'s stock price traded up 8.2% on Friday . The stock traded as high as $11.62 and last traded at $11.62. 2,716,603 shares changed hands during trading, a decline of 86% from the average session volume of 19,257,662 shares. The stock had previously closed at $10.74.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on CLF. Wells Fargo & Company reaffirmed a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. Weiss Ratings reissued a "sell (d-)" rating on shares of Cleveland-Cliffs in a research report on Tuesday, July 21st. Bank of America decreased their price objective on Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Citigroup reiterated a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $10.00 target price on shares of Cleveland-Cliffs in a report on Friday, May 1st. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Cleveland-Cliffs has an average rating of "Hold" and an average target price of $11.86.

Cleveland-Cliffs Stock Performance

The company has a current ratio of 1.89, a quick ratio of 0.63 and a debt-to-equity ratio of 1.32. The company has a market cap of $6.65 billion, a P/E ratio of -7.19 and a beta of 2.09. The company has a 50 day moving average price of $11.07 and a 200-day moving average price of $10.77.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The mining company reported ($0.20) earnings per share for the quarter, topping the consensus estimate of ($0.21) by $0.01. The business had revenue of $5.23 billion during the quarter, compared to the consensus estimate of $5.15 billion. Cleveland-Cliffs had a negative return on equity of 13.37% and a negative net margin of 4.56%.Cleveland-Cliffs's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period in the prior year, the company earned ($0.50) EPS. On average, equities analysts expect 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 stock in a transaction on Friday, June 5th. The stock was sold at an average price of $13.41, for a total value of $2,873,870.28. Following the completion of the sale, the executive vice president directly owned 184,542 shares in the company, valued at $2,474,708.22. This represents a 53.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.95% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Legacy Financial Advisors Inc. raised its stake in Cleveland-Cliffs by 9.5% during the second quarter. Legacy Financial Advisors Inc. now owns 45,510 shares of the mining company's stock worth $427,000 after buying an additional 3,936 shares during the last quarter. Rehmann Capital Advisory Group bought a new stake in shares of Cleveland-Cliffs during the second quarter worth about $102,000. Headlands Technologies LLC bought a new position in Cleveland-Cliffs in the 2nd quarter valued at about $636,000. Senator Investment Group LP acquired a new position in Cleveland-Cliffs during the 2nd quarter valued at about $25,743,000. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in Cleveland-Cliffs by 9.2% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 54,685 shares of the mining company's stock worth $513,000 after purchasing an additional 4,630 shares in the last quarter. 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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