Cleveland-Cliffs (NYSE:CLF) Stock Jumps 6.4% After Insider Buying Activity

Key Points

• Cleveland-Cliffs shares rose 6.4% to about $13.89 after director Edilson Camara purchased 7,400 shares for roughly $99,826, increasing his direct ownership by 12.91%.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $13.82, although several firms recently raised their targets, including Wells Fargo to $17.
• The company exceeded quarterly earnings expectations with $0.28 per share versus $0.24 forecast, while revenue increased 18.5% year over year to $5.61 billion, despite a negative net margin and return on equity.

Cleveland-Cliffs Inc. (NYSE:CLF - Get Free Report) was up 6.4% during mid-day trading on Friday following insider buying activity. The stock traded as high as $13.90 and last traded at $13.8850. 5,480,663 shares traded hands during trading, a decline of 71% from the average daily volume of 19,083,586 shares. The stock had previously closed at $13.05.

Specifically, Director Edilson Camara bought 7,400 shares of Cleveland-Cliffs stock in a transaction on Thursday, October 22nd. The shares were bought at an average cost of $13.49 per share, with a total value of $99,826.00. Following the completion of the purchase, the director directly owned 64,717 shares of the company's stock, valued at approximately $873,032.33. This trade represents a 12.91% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Wall Street Analysts Forecast Growth

CLF has been the topic of a number of recent research reports. Barclays boosted their price target on shares of Cleveland-Cliffs from $11.00 to $12.00 and gave the stock an "underweight" rating in a research note on Thursday. Glj Research lifted their price target on Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a "buy" rating in a report on Monday, September 21st. Wells Fargo & Company increased their target price on shares of Cleveland-Cliffs from $14.00 to $17.00 and gave the company an "overweight" rating in a research report on Tuesday. The Goldman Sachs Group reiterated a "neutral" rating and issued a $13.00 price objective on shares of Cleveland-Cliffs in a research note on Tuesday. Finally, Citigroup restated a "positive" rating on shares of Cleveland-Cliffs in a research report on Friday, July 24th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $13.82.

Cleveland-Cliffs Stock Performance

The company has a current ratio of 1.87, a quick ratio of 0.63 and a debt-to-equity ratio of 1.28. The company has a market capitalization of $7.95 billion, a price-to-earnings ratio of -16.28, a price-to-earnings-growth ratio of 5.34 and a beta of 2.09. The stock has a 50-day simple moving average of $12.13 and a 200-day simple moving average of $11.40.

Cleveland-Cliffs (NYSE:CLF - Get Free Report) last issued its earnings results on Monday, October 19th. The mining company reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of $0.24 by $0.04. Cleveland-Cliffs had a negative net margin of 2.36% and a negative return on equity of 6.83%. The company had revenue of $5.61 billion for the quarter, compared to analysts' expectations of $5.69 billion. During the same period in the prior year, the company earned ($0.51) earnings per share. The firm's revenue was up 18.5% compared to the same quarter last year. On average, analysts anticipate that Cleveland-Cliffs Inc. will post 0.12 earnings per share for the current year.

Institutional Trading of Cleveland-Cliffs

A number of hedge funds have recently bought and sold shares of CLF. Center for Financial Planning Inc. boosted its position in Cleveland-Cliffs by 119.0% during the 1st quarter. Center for Financial Planning Inc. now owns 3,322 shares of the mining company's stock worth $28,000 after acquiring an additional 1,805 shares during the period. Johnson Financial Group Inc. acquired a new stake in shares of Cleveland-Cliffs during the 2nd quarter valued at about $30,000. Fortitude Family Office LLC lifted its holdings in shares of Cleveland-Cliffs by 245.2% during the 3rd quarter. Fortitude Family Office LLC now owns 2,831 shares of the mining company's stock valued at $31,000 after buying an additional 2,011 shares during the last quarter. IFP Advisors Inc lifted its holdings in shares of Cleveland-Cliffs by 39.5% during the 2nd quarter. IFP Advisors Inc now owns 5,127 shares of the mining company's stock valued at $48,000 after buying an additional 1,453 shares during the last quarter. Finally, Global Retirement Partners LLC bought a new stake in shares of Cleveland-Cliffs in the 2nd quarter valued at approximately $72,000. 67.68% of the stock is owned by hedge funds and other institutional investors.

Cleveland-Cliffs Company Profile

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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