Cleveland-Cliffs (CLF) Rating Lowered to Hold at Zacks Investment Research

Cleveland-Cliffs (NYSE:CLF) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.

According to Zacks, “Cleveland-Cliffs remains focused on de-leveraging its balance sheet. It should also gain from major supply deals and an expected rise in steel demand in the United States. The company is also expected to  benefit from its pellet supply contracts with its U.S. iron ore customers which will help it to mitigate the impact of fluctuation in seaborne iron ore pricing. However, the company has underperformed the industry it belongs to over a year. Cleveland-Cliffs is faced with a challenging operating environment and pricing headwinds. The company has also cut its profit outlook for 2017 factoring in lower expected iron ore pricing. Demand for iron ore in China also remain soft.”

Other research analysts also recently issued research reports about the stock. B. Riley set a $10.00 price objective on shares of Cleveland-Cliffs and gave the company a “buy” rating in a research report on Friday, November 17th. FBR & Co restated a “buy” rating and set a $10.00 price objective on shares of Cleveland-Cliffs in a research report on Friday, October 20th. Jefferies Group restated a “buy” rating on shares of Cleveland-Cliffs in a research report on Monday, September 18th. ValuEngine downgraded shares of Cleveland-Cliffs from a “buy” rating to a “hold” rating in a research report on Sunday. Finally, KeyCorp restated a “hold” rating on shares of Cleveland-Cliffs in a research report on Friday, November 24th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $8.88.

Shares of Cleveland-Cliffs (NYSE:CLF) traded up $0.23 during midday trading on Tuesday, hitting $8.08. 11,263,351 shares of the stock traded hands, compared to its average volume of 16,542,102. The company has a market capitalization of $2,400.00, a P/E ratio of 12.63 and a beta of 1.61. Cleveland-Cliffs has a 52-week low of $5.56 and a 52-week high of $12.37. The company has a current ratio of 1.89, a quick ratio of 1.18 and a debt-to-equity ratio of -2.03.

Cleveland-Cliffs (NYSE:CLF) last issued its earnings results on Friday, October 20th. The mining company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.06. The firm had revenue of $698.00 million for the quarter, compared to the consensus estimate of $669.25 million. Cleveland-Cliffs had a net margin of 5.48% and a negative return on equity of 29.06%. The business’s revenue was up 26.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.11) earnings per share. equities research analysts forecast that Cleveland-Cliffs will post 0.52 earnings per share for the current year.

Hedge funds have recently made changes to their positions in the business. Nordea Investment Management AB increased its holdings in Cleveland-Cliffs by 12.1% during the second quarter. Nordea Investment Management AB now owns 716,957 shares of the mining company’s stock valued at $4,961,000 after buying an additional 77,549 shares during the last quarter. Voya Investment Management LLC increased its holdings in Cleveland-Cliffs by 19.0% during the second quarter. Voya Investment Management LLC now owns 137,280 shares of the mining company’s stock valued at $950,000 after buying an additional 21,881 shares during the last quarter. BlackRock Inc. increased its holdings in Cleveland-Cliffs by 1.6% during the second quarter. BlackRock Inc. now owns 18,860,269 shares of the mining company’s stock valued at $130,512,000 after buying an additional 306,081 shares during the last quarter. State Street Corp increased its holdings in Cleveland-Cliffs by 6.5% during the second quarter. State Street Corp now owns 10,720,937 shares of the mining company’s stock valued at $74,189,000 after buying an additional 653,261 shares during the last quarter. Finally, Principal Financial Group Inc. increased its holdings in Cleveland-Cliffs by 9.6% during the second quarter. Principal Financial Group Inc. now owns 176,400 shares of the mining company’s stock valued at $1,220,000 after buying an additional 15,511 shares during the last quarter. 56.74% of the stock is owned by institutional investors and hedge funds.

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Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc, formerly Cliffs Natural Resources Inc, is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. The Company’s segments include U.S. Iron Ore and Asia Pacific Iron Ore.

Analyst Recommendations for Cleveland-Cliffs (NYSE:CLF)

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