Cleveland-Cliffs Inc. [CLF] moved up 7.00: Why It’s Important

Cleveland-Cliffs Inc. [NYSE: CLF] gained 7.00% or 0.54 points to close at $8.25 with a heavy trading volume of 8827833 shares. The company report on November 3, 2020 that Cleveland-Cliffs Applauds President Trump’s Actions to Address Imports of Laminations and Cores from Electrical Steel.

Cleveland-Cliffs Inc. (NYSE: CLF) praised President Trump and his Administration for taking action to save 1,400 jobs at AK Steel’s Butler, Pennsylvania and Zanesville, Ohio operations. President Trump’s Administration will be moving forward with a Section 232 action implementing a remedy covering imported laminations and cores of Grain Oriented Electrical Steel (GOES). GOES is used in the production of electric transformers that support the power grid and equipment required by the U.S. military. In addition, the Administration will take action to address recently-granted Section 232 product exclusions for more than 40,000 tons of GOES greater than 920 mm wide from South Korea. The U.S. market only requires 1,400 tons of GOES in that width or greater.

Imports of laminations and cores have surged into the United States since the imposition of steel Section 232 tariffs in 2018 as certain foreign and domestic companies sought to circumvent those steel tariffs. Cleveland-Cliffs’ wholly-owned subsidiary, AK Steel, is the sole producer of GOES in the United States, and all of North America, with the capacity to produce up to 250,000 net tons of electrical steel annually from plants in Butler, Pennsylvania and Zanesville, Ohio.

It opened the trading session at $7.78, the shares rose to $8.41 and dropped to $7.78, the range by which the price of stock traded the whole day. The daily chart for CLF points out that the company has recorded 71.16% gains over the past six months. However, it is still -213.69% lower than its most recent low trading price.

If we look at the average trading volume of 9.93M shares, CLF reached to a volume of 8827833 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Cleveland-Cliffs Inc. [CLF]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CLF shares is $7.65 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CLF stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Credit Suisse have made an estimate for Cleveland-Cliffs Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 15, 2020. While these analysts kept the previous recommendation, Goldman raised their target price to Neutral. The new note on the price target was released on March 30, 2020, representing the official price target for Cleveland-Cliffs Inc. stock. On October 01, 2019, analysts decreased their price target for CLF shares from 16 to 13.

The Average True Range (ATR) for Cleveland-Cliffs Inc. is set at 0.45, with the Price to Sales ratio for CLF stock in the period of the last 12 months amounting to 0.91. The Price to Book ratio for the last quarter was 4.06, with the Price to Cash per share for the same quarter was set at 0.14.

Trading performance analysis for CLF stock

Cleveland-Cliffs Inc. [CLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.60. With this latest performance, CLF shares gained by 7.14% in over the last four-week period, additionally plugging by 71.16% over the last 6 months – not to mention a rise of 12.70% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CLF stock in for the last two-week period is set at 58.13, with the RSI for the last a single of trading hit 56.52, and the three-weeks RSI is set at 58.90 for Cleveland-Cliffs Inc. [CLF]. The present Moving Average for the last 50 days of trading for this stock 7.12, while it was recorded at 8.16 for the last single week of trading, and 5.84 for the last 200 days.

Cleveland-Cliffs Inc. [CLF]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Cleveland-Cliffs Inc. [CLF] shares currently have an operating margin of +21.40 and a Gross Margin at +28.79. Cleveland-Cliffs Inc.’s Net Margin is presently recorded at +14.86.

Return on Total Capital for CLF is now 17.01, given the latest momentum, and Return on Invested Capital for the company is 11.81. Return on Equity for this stock inclined to 75.31, with Return on Assets sitting at 7.54. When it comes to the capital structure of this company, Cleveland-Cliffs Inc. [CLF] has a Total Debt to Total Equity ratio set at 590.61. Additionally, CLF Total Debt to Total Capital is recorded at 85.52, with Total Debt to Total Assets ending up at 57.84. Long-Term Debt to Equity for the company is recorded at 590.61, with the Long-Term Debt to Total Capital now at 85.52.

Reflecting on the efficiency of the workforce at the company, Cleveland-Cliffs Inc. [CLF] managed to generate an average of $124,157 per employee. Receivables Turnover for the company is 7.98 with a Total Asset Turnover recorded at a value of 0.51.Cleveland-Cliffs Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 2.20.

Cleveland-Cliffs Inc. [CLF]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Cleveland-Cliffs Inc. posted 0.25/share EPS, while the average EPS was predicted by analysts to be reported at 0.24/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 4.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CLF. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cleveland-Cliffs Inc. go to -2.74%.

An analysis of insider ownership at Cleveland-Cliffs Inc. [CLF]

There are presently around $2,198 million, or 66.90% of CLF stock, in the hands of institutional investors. The top three institutional holders of CLF stocks are: BLACKROCK INC. with ownership of 59,665,910, which is approximately 1.573% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 42,211,833 shares of the stock with an approximate value of $348.25 million in CLF stocks shares; and STATE STREET CORP, currently with $127.23 million in CLF stock with ownership of nearly 2.699% of the company’s market capitalization.

149 institutional holders increased their position in Cleveland-Cliffs Inc. [NYSE:CLF] by around 24,446,341 shares. Additionally, 153 investors decreased positions by around 25,109,998 shares, while 56 investors held positions by with 216,888,702 shares. The mentioned changes placed institutional holdings at 266,445,041 shares, according to the latest SEC report filing. CLF stock had 41 new institutional investments in for a total of 3,961,771 shares, while 46 institutional investors sold positions of 2,699,965 shares during the same period.

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