Cleveland-Cliffs Inc. [CLF] Stock trading around $16.86 per share: What’s Next?

Cleveland-Cliffs Inc. [NYSE: CLF] stock went on an upward path that rose over 1.57% on Tuesday, amounting to a one-week price decrease of less than -2.71%. The company report on February 10, 2021 that Cleveland-Cliffs Announces Pricing of Senior Unsecured Guaranteed Notes Issued at Par, $500 million of 4.625% Notes due 2029 and $500 million of 4.875% Notes due 2031.

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Cleveland-Cliffs Inc. (NYSE: CLF) announced that it has priced $500 million aggregate principal amount of Senior Unsecured Guaranteed Notes due 2029 (the “2029 Notes”) and $500 million aggregate principal amount of Senior Unsecured Guaranteed Notes due 2031 (the “2031 Notes” and, together with the 2029 Notes, the “Notes”) in an offering that is exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”). The 2029 Notes will bear interest at an annual rate of 4.625 percent and will be issued at a price of 100 percent of face value. The 2031 Notes will bear interest at an annual rate of 4.875 percent and will be issued at a price of 100 percent of face value. The Notes will be guaranteed on a senior unsecured basis by the Company’s material direct and indirect wholly-owned domestic subsidiaries, other than certain excluded subsidiaries. The offering is expected to close on February 17, 2021, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the offering of the Notes to (i) redeem all of its outstanding 4.875% Senior Secured Notes due 2024 and 6.375% Senior Guaranteed Notes due 2025 and certain notes issued by Cleveland-Cliffs Steel Corporation (f/k/a AK Steel Corporation), including its 7.625% Senior Notes due 2021, 7.50% Senior Notes due 2023 and 6.375% Senior Notes due 2025 and (ii) reduce borrowings under the Company’s existing asset-based revolving credit facility. This news release does not constitute a notice of redemption with respect to any of the notes listed herein.

Over the last 12 months, CLF stock rose by 128.15%. The one-year Cleveland-Cliffs Inc. stock forecast points to a potential upside of 12.46. The average equity rating for CLF stock is currently 2.60, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $8.47 billion, with 399.40 million shares outstanding and 394.15 million shares in the current float. Compared to the average trading volume of 14.46M shares, CLF stock reached a trading volume of 12133795 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $19.26 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.

Exane BNP Paribas have made an estimate for Cleveland-Cliffs Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on January 19, 2021. The new note on the price target was released on November 20, 2020, representing the official price target for Cleveland-Cliffs Inc. stock. Previously, the target price had yet another raise to $4.50, while Credit Suisse 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 2.33. The Price to Book ratio for the last quarter was 8.31, with the Price to Cash per share for the same quarter was set at 0.11.

CLF Stock Performance Analysis:

Cleveland-Cliffs Inc. [CLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.71. With this latest performance, CLF shares dropped by -7.11% in over the last four-week period, additionally plugging by 175.04% over the last 6 months – not to mention a rise of 128.15% 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 56.01, with the RSI for the last a single of trading hit 56.39, and the three-weeks RSI is set at 56.96 for Cleveland-Cliffs Inc. [CLF]. The present Moving Average for the last 50 days of trading for this stock 15.38, while it was recorded at 16.54 for the last single week of trading, and 8.77 for the last 200 days.

Insight into Cleveland-Cliffs Inc. 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.

CLF Stock EPS

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 27.43%.

Cleveland-Cliffs Inc. [CLF] Insider Position Details

There are presently around $4,898 million, or 60.00% of CLF stock, in the hands of institutional investors. The top three institutional holders of CLF stocks are: BLACKROCK INC. with ownership of 60,856,942, which is approximately 3.42% of the company’s market cap and around 1.40% of the total institutional ownership; VANGUARD GROUP INC, holding 40,754,661 shares of the stock with an approximate value of $687.12 million in CLF stocks shares; and FMR LLC, currently with $329.99 million in CLF stock with ownership of nearly 31.466% of the company’s market capitalization.

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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 167 institutional holders increased their position in Cleveland-Cliffs Inc. [NYSE:CLF] by around 43,558,924 shares. Additionally, 160 investors decreased positions by around 23,135,375 shares, while 59 investors held positions by with 223,843,738 shares. The mentioned changes placed institutional holdings at 290,538,037 shares, according to the latest SEC report filing. CLF stock had 78 new institutional investments in for a total of 17,784,630 shares, while 38 institutional investors sold positions of 5,508,461 shares during the same period.

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