Cleveland-Cliffs (NYSE:CLF) Shares Down 9.4% - Should You Sell?

Key Points

• Cleveland-Cliffs shares fell 9.4% in mid-day trading to about $11.03, with trading volume running 54% below the average daily level.
• Analyst sentiment remains mixed but leans toward “Hold”: two analysts rate the stock Buy, seven Hold, and two Sell, with an average price target of $12.25.
• The company slightly exceeded quarterly EPS expectations and reported $5.23 billion in revenue, up 5.9% year over year, but it continues to post negative profitability metrics, including a 4.56% net margin and 13.37% return on equity.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report)'s stock price dropped 9.4% during mid-day trading on Monday. The company traded as low as $11.27 and last traded at $11.0340. 8,563,831 shares were traded during trading, a decline of 54% from the average daily volume of 18,497,555 shares. The stock had previously closed at $12.18.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Cleveland-Cliffs in a research report on Tuesday, July 21st. Bank of America dropped their price objective on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a "neutral" rating for the company in a research note on Thursday, July 9th. UBS Group set a $13.00 price target on Cleveland-Cliffs in a research report on Monday, September 7th. Glj Research raised their price objective on shares of Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a "buy" rating in a research note on Monday, September 21st. Finally, Citigroup reaffirmed a "positive" rating on shares of Cleveland-Cliffs in a research note on Friday, July 24th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Cleveland-Cliffs currently has an average rating of "Hold" and an average target price of $12.25.

Cleveland-Cliffs Trading Down 7.8%

The stock's 50-day moving average price is $11.81 and its 200 day moving average price is $10.87. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.89 and a quick ratio of 0.63. The firm has a market capitalization of $6.40 billion, a PE ratio of -6.94 and a beta of 2.10.

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 (EPS) for the quarter, topping the consensus estimate of ($0.21) by $0.01. The company had revenue of $5.23 billion for the quarter, compared to analysts' expectations 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 was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.50) earnings per share. On average, sell-side analysts expect that Cleveland-Cliffs Inc. will post -0.04 EPS for the current fiscal year.

Institutional Investors Weigh In On Cleveland-Cliffs

Large investors have recently modified their holdings of the business. Tidal Investments LLC lifted its stake in shares of Cleveland-Cliffs by 79.2% during the 2nd quarter. Tidal Investments LLC now owns 80,324 shares of the mining company's stock worth $754,000 after purchasing an additional 35,506 shares during the last quarter. BlueCrest Capital Management Ltd purchased a new position in Cleveland-Cliffs in the second quarter valued at about $1,969,000. Engineers Gate Manager LP grew its stake in Cleveland-Cliffs by 212.9% in the second quarter. Engineers Gate Manager LP now owns 1,407,953 shares of the mining company's stock valued at $13,221,000 after purchasing an additional 958,049 shares during the last quarter. IFP Advisors Inc raised its holdings in Cleveland-Cliffs by 39.5% in the second quarter. IFP Advisors Inc now owns 5,127 shares of the mining company's stock worth $48,000 after purchasing an additional 1,453 shares in the last quarter. Finally, Baird Financial Group Inc. lifted its position in shares of Cleveland-Cliffs by 4.2% during the second quarter. Baird Financial Group Inc. now owns 37,026 shares of the mining company's stock valued at $348,000 after buying an additional 1,496 shares during the last quarter. Institutional investors own 67.68% of the company's stock.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is a vertically integrated steel producer headquartered in Cleveland, Ohio. The company mines and processes iron ore, produces iron ore pellets, and manufactures steel products for customers primarily in North America. Its operations include integrated steel mills, electric arc furnaces, finishing facilities, and related processing and distribution capabilities.

The company produces a broad range of flat-rolled carbon steel products, including hot-rolled, cold-rolled, and coated steel.

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