Cleveland-Cliffs (NYSE:CLF) Rating Increased to Buy at Zacks Investment Research

Cleveland-Cliffs (NYSE:CLF) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday, Zacks.com reports. The firm presently has a $8.25 price target on the mining company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 4.83% from the company’s current price.

According to Zacks, “Earnings estimates for Cleveland-Cliffs for the fourth quarter and 2019 have been declining lately. The company is likely to gain from major supply deals and higher steel demand in the United States. Higher iron ore prices will also support margins. The company is also focused on reducing debt. Moreover, it is expected to gain from bright prospects of the HBI project. The addition of its HBI plant is expected to create new demand and boost margins. However, the company is exposed to headwinds from lower steel pricing, which is exerting pressure on pellet price realization. Higher U.S. steel production has led to the sharp decline in U.S. steel prices so far this year. The benchmark hot-rolled coil steel prices have also declined this year. Moreover, the company has underperformed the industry it belongs to in the past year.”

Other equities analysts have also issued reports about the stock. ValuEngine upgraded shares of Cleveland-Cliffs from a “sell” rating to a “hold” rating in a research report on Wednesday, October 2nd. Jefferies Financial Group reduced their price target on shares of Cleveland-Cliffs from $15.00 to $12.00 in a research report on Wednesday, October 16th. B. Riley reduced their price target on shares of Cleveland-Cliffs from $12.00 to $11.00 and set a “buy” rating on the stock in a research report on Thursday, January 9th. Citigroup lowered shares of Cleveland-Cliffs from a “buy” rating to a “neutral” rating in a research report on Friday, January 10th. Finally, JPMorgan Chase & Co. lowered shares of Cleveland-Cliffs from an “overweight” rating to a “neutral” rating and reduced their price target for the company from $14.00 to $8.00 in a research report on Monday, September 23rd. Six analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Cleveland-Cliffs has a consensus rating of “Hold” and a consensus price target of $10.14.

Shares of Cleveland-Cliffs stock traded up $0.07 during trading on Thursday, hitting $7.87. 1,301,464 shares of the company’s stock traded hands, compared to its average volume of 8,088,617. The company has a debt-to-equity ratio of 5.86, a current ratio of 2.32 and a quick ratio of 1.61. The firm’s fifty day moving average price is $8.14 and its 200 day moving average price is $8.35. Cleveland-Cliffs has a twelve month low of $6.59 and a twelve month high of $12.26. The company has a market cap of $2.11 billion, a PE ratio of 3.69 and a beta of 2.05.

Cleveland-Cliffs (NYSE:CLF) last issued its earnings results on Wednesday, October 23rd. The mining company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.09. The business had revenue of $555.60 million for the quarter, compared to analyst estimates of $544.88 million. Cleveland-Cliffs had a net margin of 38.99% and a return on equity of 125.91%. The firm’s revenue was down 25.1% on a year-over-year basis. During the same period in the previous year, the business earned $1.41 EPS. As a group, equities research analysts anticipate that Cleveland-Cliffs will post 1.11 earnings per share for the current year.

In related news, Director Robert P. Fisher, Jr. bought 5,000 shares of the company’s stock in a transaction on Thursday, December 5th. The stock was bought at an average cost of $7.94 per share, with a total value of $39,700.00. Following the completion of the purchase, the director now owns 23,837 shares in the company, valued at approximately $189,265.78. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Keith Koci bought 12,800 shares of the company’s stock in a transaction on Monday, December 9th. The stock was bought at an average cost of $8.11 per share, with a total value of $103,808.00. Following the completion of the purchase, the chief financial officer now owns 99,649 shares of the company’s stock, valued at approximately $808,153.39. The disclosure for this purchase can be found here. Insiders own 1.32% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in CLF. State of Alaska Department of Revenue bought a new stake in shares of Cleveland-Cliffs during the fourth quarter worth approximately $1,713,000. Envestnet Asset Management Inc. raised its stake in shares of Cleveland-Cliffs by 30.9% during the third quarter. Envestnet Asset Management Inc. now owns 124,846 shares of the mining company’s stock worth $901,000 after buying an additional 29,443 shares during the last quarter. Cetera Advisor Networks LLC raised its stake in shares of Cleveland-Cliffs by 22.1% during the third quarter. Cetera Advisor Networks LLC now owns 32,434 shares of the mining company’s stock worth $234,000 after buying an additional 5,876 shares during the last quarter. Squarepoint Ops LLC raised its stake in shares of Cleveland-Cliffs by 139.2% during the third quarter. Squarepoint Ops LLC now owns 71,505 shares of the mining company’s stock worth $516,000 after buying an additional 41,610 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of Cleveland-Cliffs by 50.9% during the third quarter. Russell Investments Group Ltd. now owns 49,953 shares of the mining company’s stock worth $361,000 after buying an additional 16,853 shares during the last quarter. 80.84% of the stock is owned by institutional investors.

About Cleveland-Cliffs

Cleveland-Cliffs Inc operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific. The company was formerly known as Cliffs Natural Resources Inc and changed its name to Cleveland-Cliffs Inc in August 2017.

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