Pinnacle Holdings LLC Takes Position in Cleveland-Cliffs Inc. $CLF

Key Points

• Pinnacle Holdings LLC acquired 108,643 Cleveland-Cliffs shares during the second quarter, valued at approximately $1.02 million. Institutional investors collectively own 67.68% of CLF.
• Cleveland-Cliffs is advancing a $1 billion modernization project at Middletown Works, supported by a $500 million U.S. Department of Energy grant, though final negotiations and implementation details remain pending.
• CLF posted better-than-expected quarterly results, but profitability remains weak, with a negative net margin and return on equity. Analysts maintain a consensus “Hold” rating with an average price target of $11.86.

Pinnacle Holdings LLC bought a new position in shares of Cleveland-Cliffs Inc. (NYSE:CLF - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 108,643 shares of the mining company's stock, valued at approximately $1,020,000.

Several other institutional investors have also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in Cleveland-Cliffs in the second quarter valued at approximately $522,766,000. Vanguard Group Inc. lifted its position in shares of Cleveland-Cliffs by 13.4% during the 4th quarter. Vanguard Group Inc. now owns 54,391,397 shares of the mining company's stock worth $722,318,000 after buying an additional 6,447,462 shares during the last quarter. State Street Corp lifted its position in shares of Cleveland-Cliffs by 14.2% during the 4th quarter. State Street Corp now owns 29,278,156 shares of the mining company's stock worth $388,814,000 after buying an additional 3,632,150 shares during the last quarter. Castle Hook Partners LP boosted its holdings in shares of Cleveland-Cliffs by 572.4% in the 4th quarter. Castle Hook Partners LP now owns 18,083,029 shares of the mining company's stock valued at $240,143,000 after buying an additional 15,393,507 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Cleveland-Cliffs by 6.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 15,489,207 shares of the mining company's stock valued at $130,873,000 after buying an additional 925,031 shares in the last quarter. Hedge funds and other institutional investors own 67.68% of the company's stock.

Key Headlines Impacting Cleveland-Cliffs

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

• Positive Sentiment: Federal funding reduces the cost of the upgrade. The U.S. Department of Energy established a framework to rescope its previously awarded $500 million grant, supporting a $1 billion Middletown Works investment. Cleveland-Cliffs and the DOE are expected to fund the project equally, improving the economics of the plant modernization. Cleveland-Cliffs Announces $1 Billion Middletown Works Investment
• Positive Sentiment: The investment could strengthen Cleveland-Cliffs’ U.S. steel competitiveness. The project is intended to advance the company’s steel modernization strategy, potentially improving the efficiency and long-term viability of a key Ohio facility while supporting domestic steel production. Cleveland-Cliffs Advances Steel Modernization Strategy
• Positive Sentiment: Political support added to the catalyst. Coverage highlighted backing from Vice President JD Vance, reinforcing expectations that the project aligns with U.S. industrial-policy and domestic manufacturing priorities. Cleveland-Cliffs Stock Gets a JD Vance Boost
• Neutral Sentiment: Execution remains a consideration. The DOE framework still requires Cleveland-Cliffs to finalize negotiations and implementation plans, so the timing, final terms and ultimate financial benefits are not yet certain. Cleveland-Cliffs to Match $500 Million DOE Grant
• Negative Sentiment: Investors remain aware of CLF’s volatility and financial pressure. The stock recently experienced a sharp decline, while Cleveland-Cliffs continues to report negative profitability metrics and carries substantial leverage. These factors could limit the durability of the positive reaction if steel-market conditions weaken.

Cleveland-Cliffs Stock Performance

Shares of CLF opened at $11.29 on Monday. The company's 50 day simple moving average is $11.02 and its 200-day simple moving average is $10.75. The firm has a market cap of $6.44 billion, a PE ratio of -6.97 and a beta of 2.09. Cleveland-Cliffs Inc. has a 12-month low of $7.73 and a 12-month high of $16.70. The company has a current ratio of 1.89, a quick ratio of 0.63 and a debt-to-equity ratio of 1.32.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The mining company reported ($0.20) EPS for the quarter, beating the consensus estimate 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 net margin of 4.56% and a negative return on equity of 13.37%. Cleveland-Cliffs's revenue for the quarter was up 5.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.50) EPS. As a group, equities analysts predict that Cleveland-Cliffs Inc. will post -0.11 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on CLF shares. Glj Research raised shares of Cleveland-Cliffs from a "hold" rating to a "buy" rating and increased their target price for the company from $15.01 to $15.60 in a research report on Friday, July 24th. Bank of America reduced their price target on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating for the company in a research report on Thursday, July 9th. Barclays raised their price objective on Cleveland-Cliffs from $9.00 to $10.00 and gave the stock an "underweight" rating in a report on Friday, July 24th. Wells Fargo & Company reiterated a "positive" rating on shares of Cleveland-Cliffs in a research report on Friday, July 24th. Finally, Citigroup reissued a "positive" rating on shares of Cleveland-Cliffs in a report on Friday, July 24th. 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 company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $11.86.

Insider Activity at Cleveland-Cliffs

In other news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $13.41, for a total transaction of $2,873,870.28. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.95% 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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