Cleveland-Cliffs (NYSE:CLF) Shares Gap Up - Time to Buy?

Key Points

• Cleveland-Cliffs shares opened higher at $12.88, versus a prior close of $12.20, before trading near $12.24. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Wells Fargo upgraded the stock to “overweight” with a $14 target, while the broader consensus remains “Hold”, with an average price target of $12.45.
• In its latest quarter, Cleveland-Cliffs reported an adjusted loss of $0.20 per share, slightly better than estimates, and revenue of $5.23 billion, up 5.9% year over year. Institutional investors own approximately 67.7% of the company.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) gapped up before the market opened on Tuesday. The stock had previously closed at $12.20, but opened at $12.88. Cleveland-Cliffs shares last traded at $12.2360, with a volume of 2,604,524 shares trading hands.

Wall Street Analyst Weigh In

CLF has been the topic of several research analyst reports. Glj Research raised their target price on shares of Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a "buy" rating in a research report on Monday, September 21st. Wells Fargo & Company raised shares of Cleveland-Cliffs from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $12.00 to $14.00 in a research report on Tuesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cleveland-Cliffs in a research note on Tuesday, July 21st. UBS Group set a $13.00 price target on shares of Cleveland-Cliffs in a report on Monday, September 7th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Cleveland-Cliffs from $11.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, September 9th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Cleveland-Cliffs currently has an average rating of "Hold" and an average target price of $12.45.

Cleveland-Cliffs Trading Up 1.5%

The business's 50-day moving average is $11.92 and its two-hundred day moving average is $10.98. 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 stock has a market capitalization of $7.07 billion, a PE ratio of -7.65 and a beta of 2.09.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The mining company reported ($0.20) EPS for the quarter, topping analysts' consensus estimates of ($0.21) by $0.01. Cleveland-Cliffs had a negative return on equity of 13.37% and a negative net margin of 4.56%.The company had revenue of $5.23 billion for the quarter, compared to analysts' expectations of $5.15 billion. During the same quarter in the previous year, the firm posted ($0.50) earnings per share. The firm's quarterly revenue was up 5.9% on a year-over-year basis. On average, analysts predict that Cleveland-Cliffs Inc. will post -0.04 earnings per share for the current year.

Institutional Trading of Cleveland-Cliffs

A number of hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Cleveland-Cliffs during the 2nd quarter worth $522,766,000. Castle Hook Partners LP increased its position in shares of Cleveland-Cliffs by 572.4% during the fourth quarter. Castle Hook Partners LP now owns 18,083,029 shares of the mining company's stock worth $240,143,000 after acquiring an additional 15,393,507 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Cleveland-Cliffs by 6.4% in the first quarter. Dimensional Fund Advisors LP now owns 15,489,207 shares of the mining company's stock worth $130,873,000 after acquiring an additional 925,031 shares in the last quarter. Turiya Advisors Asia Ltd purchased a new position in Cleveland-Cliffs in the fourth quarter valued at about $96,280,000. Finally, PointState Capital LP purchased a new position in Cleveland-Cliffs in the second quarter valued at about $61,805,000. Hedge funds and other institutional investors own 67.68% of the company's stock.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is an integrated steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, including the mining and processing of iron ore, production of iron ore pellets, and manufacturing of finished steel products.

Cleveland-Cliffs primarily produces flat-rolled carbon steel, including hot-rolled, cold-rolled and galvanized products, as well as coated and specialty steel. Its products are used in automotive manufacturing, construction, infrastructure, appliances, machinery and other industrial applications.

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