Cleveland-Cliffs (NYSE:CLF) Shares Gap Up After Better-Than-Expected Earnings

Cleveland-Cliffs Inc. (NYSE:CLF)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $9.45, but opened at $10.67. Cleveland-Cliffs shares last traded at $11.2070, with a volume of 10,932,576 shares traded.

The mining company reported ($0.20) EPS for the quarter, topping the consensus estimate of ($0.21) by $0.01. The business had revenue of $5.23 billion during the quarter, compared to analysts’ expectations of $5.15 billion. Cleveland-Cliffs had a negative return on equity of 15.48% and a negative net margin of 6.42%.The firm’s revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the business earned ($0.50) earnings per share.

Key Headlines Impacting Cleveland-Cliffs

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

• Positive Sentiment: Cleveland-Cliffs reported second-quarter revenue of about $5.23 billion, topping estimates and rising year over year, while adjusted EPS of a $0.20 loss narrowly beat expectations. Cleveland-Cliffs (CLF) Reports Q2 Loss, Tops Revenue Estimates
• Positive Sentiment: The company’s outlook for the third quarter was stronger than expected, with investors focusing on improving profitability and management’s forecast for a meaningful increase in EBITDA. Cleveland-Cliffs shares jump as upbeat third-quarter forecast outweighs earnings miss (NYSE:CLF)
• Positive Sentiment: The board promoted CFO Celso Goncalves to President and CFO and added him to the board, a sign of leadership continuity and confidence in the company’s strategy. Cleveland-Cliffs Announces Promotion of Chief Financial Officer Celso Goncalves from Executive Vice President to President and Appointment to Board of Directors

Wall Street Analysts Forecast Growth

CLF has been the topic of several research analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of Cleveland-Cliffs in a research report on Friday, April 24th. Barclays initiated coverage on shares of Cleveland-Cliffs in a research report on Thursday, May 21st. They set an “underweight” rating and a $9.00 target price for the company. Morgan Stanley reissued an “equal weight” rating and issued a $12.50 price target (up from $12.00) on shares of Cleveland-Cliffs in a research note on Monday, June 22nd. Glj Research raised shares of Cleveland-Cliffs from a “sell” rating to a “hold” rating and increased their price target for the stock from $9.03 to $15.01 in a report on Tuesday, June 9th. Finally, Citigroup lowered their price objective on shares of Cleveland-Cliffs from $11.00 to $10.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 7th. Nine investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $11.50.

Insider Activity

In other news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the company’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $13.41, for a total value of $2,873,870.28. Following the completion of the transaction, the executive vice president directly owned 184,542 shares in the company, valued at approximately $2,474,708.22. This represents a 53.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.95% of the company’s stock.

Institutional Trading of Cleveland-Cliffs

A number of hedge funds have recently bought and sold shares of the company. Focus Partners Wealth bought a new position in Cleveland-Cliffs during the first quarter valued at approximately $339,000. Prudential Financial Inc. lifted its holdings in shares of Cleveland-Cliffs by 27.4% in the 2nd quarter. Prudential Financial Inc. now owns 49,955 shares of the mining company’s stock worth $380,000 after acquiring an additional 10,733 shares during the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Cleveland-Cliffs by 4.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 143,264 shares of the mining company’s stock valued at $1,088,000 after purchasing an additional 6,073 shares in the last quarter. CW Advisors LLC boosted its stake in shares of Cleveland-Cliffs by 47.4% in the 2nd quarter. CW Advisors LLC now owns 22,167 shares of the mining company’s stock valued at $168,000 after purchasing an additional 7,127 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in shares of Cleveland-Cliffs by 20.3% during the 2nd quarter. Invesco Ltd. now owns 3,081,241 shares of the mining company’s stock valued at $23,417,000 after purchasing an additional 520,120 shares during the last quarter. Institutional investors own 67.68% of the company’s stock.

Cleveland-Cliffs Stock Performance

The company has a market cap of $6.41 billion, a P/E ratio of -4.80 and a beta of 2.13. The company’s fifty day moving average is $11.25 and its 200 day moving average is $11.04. The company has a current ratio of 2.02, a quick ratio of 0.64 and a debt-to-equity ratio of 1.29.

About Cleveland-Cliffs

Cleveland-Cliffs Inc is a leading North American producer of iron ore pellets and flat-rolled steel products. Tracing its roots to 1847, the company has evolved from an iron-ore mining concern in the Great Lakes region into a fully integrated steelmaker. Today, Cleveland-Cliffs operates iron ore mining complexes in Michigan and Minnesota as well as steelmaking and finishing facilities across the United States.

The company’s integrated platform begins with direct control of key raw materials, including iron ore and scrap, and extends through every stage of steel production.