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

Cleveland-Cliffs Inc. (NYSE:CLF)’s stock price gapped up prior to trading on Thursday following a better than expected earnings announcement. 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.

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

Cleveland-Cliffs News Summary

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

Analyst Ratings Changes

CLF has been the topic of several recent research reports. Argus raised shares of Cleveland-Cliffs to a “hold” rating in a report on Monday, April 6th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $10.00 target price on shares of Cleveland-Cliffs in a research note on Friday, May 1st. 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 report on Monday, June 22nd. KeyCorp initiated coverage on shares of Cleveland-Cliffs in a research note on Wednesday, March 25th. They set a “sector weight” rating on the stock. Finally, Barclays began coverage on shares of Cleveland-Cliffs in a report on Thursday, May 21st. They issued an “underweight” rating and a $9.00 price objective for the company. Nine research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $11.50.

Insider Activity

In related news, EVP Celso L. Goncalves, Jr. sold 214,308 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $13.41, for a total transaction of $2,873,870.28. Following the sale, the executive vice president owned 184,542 shares of the company’s stock, valued at approximately $2,474,708.22. This represents a 53.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.95% of the company’s stock.

Institutional Investors Weigh In On Cleveland-Cliffs

Hedge funds and other institutional investors have recently modified their holdings of the stock. Focus Partners Wealth bought a new position in shares of Cleveland-Cliffs in the first quarter valued at approximately $339,000. Prudential Financial Inc. increased its holdings in Cleveland-Cliffs by 27.4% during 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 period. Russell Investments Group Ltd. lifted its stake in Cleveland-Cliffs by 4.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 143,264 shares of the mining company’s stock worth $1,088,000 after purchasing an additional 6,073 shares in the last quarter. CW Advisors LLC lifted its stake in Cleveland-Cliffs by 47.4% in the 2nd quarter. CW Advisors LLC now owns 22,167 shares of the mining company’s stock worth $168,000 after purchasing an additional 7,127 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in Cleveland-Cliffs by 20.3% in 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 period. 67.68% of the stock is currently owned by institutional investors.

Cleveland-Cliffs Stock Performance

The company’s fifty day simple moving average is $11.25 and its 200 day simple moving average is $11.04. The stock has a market capitalization of $6.41 billion, a P/E ratio of -4.80 and a beta of 2.13. 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.