Cleveland-Cliffs (NYSE:CLF) Share Price Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• Cleveland-Cliffs shares fell below their 200-day moving average, trading as low as $11.25 and last at about $11.26, versus the average of $11.39.
• Analysts’ consensus rating is Hold, with an average price target of $14.18; three analysts rate the stock Buy, seven Hold and two Sell.
• The company reported quarterly EPS of $0.28, beating the $0.24 estimate, while revenue of $5.61 billion missed forecasts; revenue rose 18.5% year over year.

Shares of Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $11.39 and traded as low as $11.25. Cleveland-Cliffs shares last traded at $11.2640, with a volume of 23,689,109 shares changing hands.

Analysts Set New Price Targets

Several research analysts have issued reports on the company. UBS Group set a $13.00 target price on Cleveland-Cliffs in a research report on Monday, September 7th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $13.00 price target on shares of Cleveland-Cliffs in a research report on Tuesday, October 20th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cleveland-Cliffs in a research note on Monday, October 19th. Citigroup increased their price objective on shares of Cleveland-Cliffs from $12.00 to $14.00 and gave the stock a "neutral" rating in a research note on Friday, October 30th. Finally, Bank of America dropped their price objective on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Cleveland-Cliffs currently has a consensus rating of "Hold" and an average target price of $14.18.

Cleveland-Cliffs Trading Down 12.3%

The company has a market capitalization of $6.43 billion, a P/E ratio of -13.25, a PEG ratio of 5.49 and a beta of 1.99. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.64 and a current ratio of 1.87. The stock has a fifty day moving average of $12.53 and a 200 day moving average of $11.39.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last released its quarterly earnings results on Monday, October 19th. The mining company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.04. Cleveland-Cliffs had a negative return on equity of 6.83% and a negative net margin of 2.36%. The business had revenue of $5.61 billion during the quarter, compared to analyst estimates of $5.69 billion. During the same quarter in the previous year, the company posted ($0.51) earnings per share. Cleveland-Cliffs's revenue for the quarter was up 18.5% on a year-over-year basis. As a group, equities research analysts anticipate that Cleveland-Cliffs Inc. will post 0.10 EPS for the current fiscal year.

Insider Activity

In related news, Director Edilson Camara acquired 7,400 shares of the business's stock in a transaction that occurred on Thursday, October 22nd. The stock was bought at an average cost of $13.49 per share, for a total transaction of $99,826.00. Following the purchase, the director owned 64,717 shares in the company, valued at $873,032.33. The trade was a 12.91% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.95% of the company's stock.

Hedge Funds Weigh In On Cleveland-Cliffs

Several large investors have recently added to or reduced their stakes in CLF. Sei Investments Co. boosted its position in shares of Cleveland-Cliffs by 95.4% in the first quarter. Sei Investments Co. now owns 302,972 shares of the mining company's stock worth $2,560,000 after purchasing an additional 147,899 shares during the period. Quantinno Capital Management LP increased its stake in shares of Cleveland-Cliffs by 68.0% in the first quarter. Quantinno Capital Management LP now owns 212,522 shares of the mining company's stock worth $1,796,000 after purchasing an additional 86,036 shares in the last quarter. SFE Investment Counsel bought a new stake in shares of Cleveland-Cliffs during the 2nd quarter valued at $8,562,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Cleveland-Cliffs during the 2nd quarter valued at $505,000. Finally, California State Teachers Retirement System raised its position in shares of Cleveland-Cliffs by 23.0% during the 1st quarter. California State Teachers Retirement System now owns 662,180 shares of the mining company's stock valued at $5,595,000 after purchasing an additional 123,660 shares during the period. Hedge funds and other institutional investors own 67.68% of the company's stock.

About Cleveland-Cliffs

Cleveland-Cliffs Inc is an integrated North American steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, from mining and processing iron ore to producing and distributing finished steel products. Its operations include iron ore mines and pelletizing facilities, steel mills, finishing plants, and related manufacturing and distribution assets.

The company produces carbon steel, stainless steel, electrical steel, and other specialty products, including hot-rolled, cold-rolled, and galvanized sheet steel.

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