Cleveland-Cliffs (NYSE:CLF) Stock Falls 6.9% – Time to Sell?

Cleveland-Cliffs Inc. (NYSE:CLF) shares were down 6.9% during mid-day trading on Tuesday. The stock traded as low as $12.63 and last traded at $13.1260. Approximately 8,713,336 shares were traded during trading, a decline of 54% from the average daily volume of 18,850,313 shares. The stock had previously closed at $14.10.

Trending Headlines about Cleveland-Cliffs

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Strong third-quarter recovery: Cleveland-Cliffs returned to profitability with approximately $0.27–$0.28 in adjusted EPS, revenue of about $5.6 billion and adjusted EBITDA of $612 million. Higher steel prices and shipments helped drive the improvement, while management’s guidance pointed to stronger future profitability. Cleveland-Cliffs Posts Strongest Quarter in 3 Years
• Positive Sentiment: Estimates and technical momentum improved: Recent earnings-estimate revisions are moving higher, and CLF has traded above its 20-day moving average. These factors, along with high call-option activity, suggest that some traders expect the recovery and recent momentum to continue. Earnings Estimates Moving Higher for Cleveland-Cliffs
• Positive Sentiment: Valuation may appeal to turnaround investors: Several analyses describe CLF as inexpensive relative to its potential earnings recovery, with one view suggesting the stock could be materially below fair value if profitability improves as expected. Cleveland-Cliffs Multiple Repricing Opportunity
• Neutral Sentiment: Mixed earnings details: EPS exceeded expectations, but quarterly revenue was slightly below consensus estimates. Investors are weighing the sharp operational improvement against the durability of steel prices and demand.
• Negative Sentiment: Debt and analyst concerns remain: Coverage has highlighted CLF’s elevated leverage and earnings volatility. Barclays reiterated a Sell view, reinforcing the argument that the recovery carries more risk than the steadier outlook at some competitors. Cleveland-Cliffs Receives a Sell from Barclays

Analyst Upgrades and Downgrades

CLF has been the topic of several recent research reports. Citigroup reiterated a “positive” rating on shares of Cleveland-Cliffs in a report on Friday, July 24th. UBS Group set a $13.00 price objective on Cleveland-Cliffs in a report on Monday, September 7th. Bank of America reduced their target price on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating on the stock in a research note on Thursday, July 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cleveland-Cliffs in a research note on Monday. Finally, Wells Fargo & Company lifted their price target on shares of Cleveland-Cliffs from $14.00 to $17.00 and gave the stock an “overweight” rating in a research report on Tuesday. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $13.20.

Cleveland-Cliffs Trading Up 2.6%

The company has a market capitalization of $7.99 billion, a P/E ratio of -16.48, a PEG ratio of 5.20 and a beta of 2.09. The business has a 50 day moving average price of $12.11 and a 200 day moving average price of $11.37. The company has a current ratio of 1.87, a quick ratio of 0.63 and a debt-to-equity ratio of 1.28.

Cleveland-Cliffs (NYSE:CLF) last released its quarterly earnings data on Monday, October 19th. The mining company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.04. The business had revenue of $5.61 billion for the quarter, compared to analyst estimates of $5.69 billion. Cleveland-Cliffs had a negative net margin of 2.36% and a negative return on equity of 6.83%. Cleveland-Cliffs’s quarterly revenue was up 18.5% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.51) EPS. Analysts anticipate that Cleveland-Cliffs Inc. will post 0.12 EPS for the current year.

Institutional Investors Weigh In On Cleveland-Cliffs

Several hedge funds have recently bought and sold shares of CLF. BlackRock Inc. acquired a new position in shares of Cleveland-Cliffs in the 2nd quarter valued at $522,766,000. PointState Capital LP bought a new stake in shares of Cleveland-Cliffs in the 2nd quarter valued at $61,805,000. Avala Global LP bought a new stake in shares of Cleveland-Cliffs in the 2nd quarter valued at $58,325,000. Kinetic Partners Management LP acquired a new stake in Cleveland-Cliffs during the 2nd quarter worth $56,511,000. Finally, Assenagon Asset Management S.A. raised its stake in Cleveland-Cliffs by 208.2% during the 2nd quarter. Assenagon Asset Management S.A. now owns 6,021,829 shares of the mining company’s stock worth $56,545,000 after buying an additional 4,067,994 shares during the period. 67.68% of the stock is currently owned by institutional investors and hedge funds.

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.