Cleveland-Cliffs Inc. [NYSE: CLF] closed the trading session at $16.48 on 01/15/21. The day’s price range saw the stock hit a low of $16.44, while the highest price level was $17.73. The company report on December 9, 2020 that Cleveland-Cliffs Inc. Completes Acquisition of ArcelorMittal USA.
Cleveland-Cliffs Inc. (NYSE: CLF) announced that it has successfully completed the acquisition of substantially all of the operations of ArcelorMittal USA LLC and its subsidiaries (“ArcelorMittal USA”), forming the largest flat-rolled steel producer in North America. On a full-year 2019 basis, the combined Company generated pro-forma revenues of approximately $17 billion and combined adjusted EBITDA of approximately $1.7 billion, including previously disclosed expected synergies.
In connection with the acquisition of ArcelorMittal USA, which includes the interests of ArcelorMittal USA of 60% in I/N Tek L.P. and 50% in I/N Kote L.P., Cleveland-Cliffs also acquired Nippon Steel Corporation’s remaining interests of 50% in I/N Kote and 40% in I/N Tek, for a total consideration of approximately $183 million. With this additional transaction, Cleveland-Cliffs becomes the sole owner of 100% of I/N Tek and I/N Kote, which generated a combined $121 million of adjusted EBITDA in 2019.
The stocks have a year to date performance of 13.19 percent and weekly performance of -8.65 percent. The stock has been moved at 189.12 percent over the last six months. The stock has performed 21.71 percent around the most recent 30 days and changed 120.03 percent over the most recent 3-months.
If compared to the average trading volume of 11.92M shares, CLF reached to a volume of 20510169 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say 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 $14.09 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 2.60. 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.
KeyBanc Capital Markets have made an estimate for Cleveland-Cliffs Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 20, 2020. While these analysts kept the previous recommendation, Credit Suisse raised their target price to Neutral. The new note on the price target was released on April 15, 2020, representing the official price target for Cleveland-Cliffs Inc. stock. Previously, the target price had yet another raise to $4, while Goldman analysts kept a Neutral rating on CLF stock.
The Average True Range (ATR) for Cleveland-Cliffs Inc. is set at 1.00, with the Price to Sales ratio for CLF stock in the period of the last 12 months amounting to 2.00. The Price to Book ratio for the last quarter was 8.12, with the Price to Cash per share for the same quarter was set at 0.13.
CLF stock trade performance evaluation
Cleveland-Cliffs Inc. [CLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.65. With this latest performance, CLF shares gained by 21.71% in over the last four-week period, additionally plugging by 189.12% over the last 6 months – not to mention a rise of 110.47% 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 59.07, with the RSI for the last a single of trading hit 52.67, and the three-weeks RSI is set at 62.37 for Cleveland-Cliffs Inc. [CLF]. The present Moving Average for the last 50 days of trading for this stock 12.66, while it was recorded at 17.82 for the last single week of trading, and 7.54 for the last 200 days.
Cleveland-Cliffs Inc. [CLF]: An insightful look at the core fundamentals
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.
Earnings per share (EPS) analysis for Cleveland-Cliffs Inc. [CLF] stock
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%.
Cleveland-Cliffs Inc. [CLF]: Insider Ownership positions
There are presently around $4,447 million, or 70.60% of CLF stock, in the hands of institutional investors. The top three institutional holders of CLF stocks are: BLACKROCK INC. with ownership of 58,844,531, which is approximately -1.377% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 40,291,022 shares of the stock with an approximate value of $664.0 million in CLF stocks shares; and FISHER ASSET MANAGEMENT, LLC, currently with $286.39 million in CLF stock with ownership of nearly 35.59% of the company’s market capitalization.
Positions in Cleveland-Cliffs Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 128 institutional holders increased their position in Cleveland-Cliffs Inc. [NYSE:CLF] by around 27,093,808 shares. Additionally, 148 investors decreased positions by around 26,696,535 shares, while 73 investors held positions by with 216,024,910 shares. The mentioned changes placed institutional holdings at 269,815,253 shares, according to the latest SEC report filing. CLF stock had 40 new institutional investments in for a total of 4,324,969 shares, while 41 institutional investors sold positions of 4,523,622 shares during the same period.