BlackRock Inc. Invests $522.77 Million in Cleveland-Cliffs Inc. $CLF

Key Points

• BlackRock acquired 55.7 million Cleveland-Cliffs shares worth approximately $522.8 million, giving it a 9.76% stake; institutional investors collectively own 67.68% of the company.
• Cleveland-Cliffs plans a $1 billion modernization of its Middletown Works facility, supported by $500 million from the U.S. Department of Energy, to improve efficiency and help protect about 2,300 jobs.
• The company slightly beat quarterly earnings and revenue expectations, but analysts maintain a consensus “Hold” rating with an $11.96 price target; an executive also sold $2.87 million in shares.

BlackRock Inc. acquired a new stake in Cleveland-Cliffs Inc. (NYSE:CLF - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 55,672,638 shares of the mining company's stock, valued at approximately $522,766,000. BlackRock Inc. owned about 9.76% of Cleveland-Cliffs at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Public Employees Retirement System of Ohio increased its stake in shares of Cleveland-Cliffs by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 152,009 shares of the mining company's stock worth $1,855,000 after purchasing an additional 943 shares in the last quarter. Moors & Cabot Inc. boosted its holdings in Cleveland-Cliffs by 3.0% in the 3rd quarter. Moors & Cabot Inc. now owns 33,118 shares of the mining company's stock worth $404,000 after buying an additional 960 shares during the period. Rexford Capital Inc. grew its stake in Cleveland-Cliffs by 11.8% in the 4th quarter. Rexford Capital Inc. now owns 9,500 shares of the mining company's stock valued at $126,000 after buying an additional 1,000 shares in the last quarter. IFP Advisors Inc boosted its holdings in shares of Cleveland-Cliffs by 117.5% in the fourth quarter. IFP Advisors Inc now owns 2,221 shares of the mining company's stock worth $29,000 after acquiring an additional 1,200 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in shares of Cleveland-Cliffs by 94.0% in the fourth 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. 67.68% of the stock is owned by institutional investors.

Key Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: $1 billion Middletown Works investment: Cleveland-Cliffs announced plans to modernize its Middletown, Ohio, steel facility. The project is expected to improve operating efficiency and help protect approximately 2,300 jobs. Cliffs announces blast furnace investment
• Positive Sentiment: Federal support reduces project funding risk: The upgrade is backed by $500 million from the U.S. Department of Energy. The investment is aimed at modernizing the blast furnace, improving efficiency, and addressing emissions concerns, potentially strengthening CLF’s long-term competitiveness. CLF Receives $500 Million DOE Support for Middletown Works Upgrade
• Positive Sentiment: Trade tensions support domestic steelmakers: The breakdown in U.S.-Canada trade talks and renewed focus on steel tariffs encouraged investors to favor U.S. producers, including Cleveland-Cliffs. Higher trade barriers could reduce import competition, although the longer-term impact depends on possible retaliation and changes in policy. Nucor, Steel Dynamics, Cleveland-Cliffs stocks rise as US-Canada trade talks fail
• Neutral Sentiment: Wells Fargo raised its price target to $12 from $11 while maintaining an “equal weight” rating. The increase signals modestly improved valuation potential but does not represent a bullish recommendation. Wells Fargo raises Cleveland-Cliffs price target

Insider Buying and Selling

In other Cleveland-Cliffs news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the business's stock in a transaction that occurred on 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 completion of the transaction, the executive vice president owned 184,542 shares of the company's stock, valued at $2,474,708.22. The trade was a 53.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.95% of the stock is currently owned by corporate insiders.

Cleveland-Cliffs Price Performance

Cleveland-Cliffs stock opened at $11.31 on Tuesday. The stock has a market cap of $6.45 billion, a price-to-earnings ratio of -6.98 and a beta of 2.09. The company has a quick ratio of 0.63, a current ratio of 1.89 and a debt-to-equity ratio of 1.32. The business has a 50-day simple moving average of $10.97 and a 200 day simple moving average of $10.73. Cleveland-Cliffs Inc. has a 52 week low of $7.73 and a 52 week high of $16.70.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The mining company reported ($0.20) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.21) by $0.01. The firm 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%.The company's revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.50) EPS. On average, research analysts forecast that Cleveland-Cliffs Inc. will post -0.11 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Morgan Stanley reiterated an "equal weight" rating and set a $12.50 price objective (up from $12.00) on shares of Cleveland-Cliffs in a research note on Monday, June 22nd. Citigroup restated a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. Bank of America reduced their target price on Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating for the company in a report on Thursday, July 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cleveland-Cliffs in a research report on Tuesday, July 21st. Finally, Glj Research raised shares of Cleveland-Cliffs from a "hold" rating to a "buy" rating and upped their target price for the stock from $15.01 to $15.60 in a report on Friday, July 24th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Cleveland-Cliffs presently has a consensus rating of "Hold" and a consensus price target of $11.96.

Cleveland-Cliffs 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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