Cleveland-Cliffs Inc. [NYSE: CLF] closed the trading session at $25.00 on 07/30/21. The day’s price range saw the stock hit a low of $24.27, while the highest price level was $25.53. The company report on July 28, 2021 that Cleveland-Cliffs Completes Redemption of All Outstanding Preferred Shares with $1.2 Billion in Cash, Reducing Diluted Share Count by 10%.
Cleveland-Cliffs Inc. (NYSE: CLF) announced that it has completed the redemption of the entirety of its outstanding Series B Participating Redeemable Preferred Stock held by an affiliate of ArcelorMittal S.A. for approximately $1.2 billion, or $21.18 per common share for the equivalent of approximately 58 million common shares. The redemption was completed with existing liquidity. The elimination of the preferred shares from Cleveland-Cliffs’ capital structure reduces the Company’s diluted share count by 10% on a pro-forma basis.
Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President, and CEO, said: “Given the strength of our business fundamentals and where our common shares have been trading, the buyback of the preferred shares at an attractive price was a no-brainer, highly accretive deal for our shareholders. We actually believe this transaction is even better than a common share buyback, because we acquired the entire tranche at a 20-day VWAP without making any noise in the market. The buyback is done, and the total cash spent is less than the free cash flow we expect to generate this quarter.”.
The stocks have a year to date performance of 71.70 percent and weekly performance of 15.85 percent. The stock has been moved at 62.97 percent over the last six months. The stock has performed 15.96 percent around the most recent 30 days and changed 39.98 percent over the most recent 3-months.
If compared to the average trading volume of 29.49M shares, CLF reached to a volume of 25277824 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 $25.92 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 2.30. 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.
Argus have made an estimate for Cleveland-Cliffs Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 08, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price to Overweight. The new note on the price target was released on June 16, 2021, representing the official price target for Cleveland-Cliffs Inc. stock. Previously, the target price had yet another raise to $25, while BofA Securities analysts kept a Buy rating on CLF stock. On May 04, 2021, analysts increased their price target for CLF shares from 21 to 24.
The Average True Range (ATR) for Cleveland-Cliffs Inc. is set at 1.28, with the Price to Sales ratio for CLF stock in the period of the last 12 months amounting to 0.96. The Price to Book ratio for the last quarter was 3.86, with the Price to Cash per share for the same quarter was set at 0.15.
CLF stock trade performance evaluation
Cleveland-Cliffs Inc. [CLF] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.85. With this latest performance, CLF shares gained by 15.96% in over the last four-week period, additionally plugging by 62.97% over the last 6 months – not to mention a rise of 340.92% 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 66.85, with the RSI for the last a single of trading hit 74.06, and the three-weeks RSI is set at 62.91 for Cleveland-Cliffs Inc. [CLF]. The present Moving Average for the last 50 days of trading for this stock 21.24, while it was recorded at 23.54 for the last single week of trading, and 16.38 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 +3.00 and a Gross Margin at +6.98. Cleveland-Cliffs Inc.’s Net Margin is presently recorded at -2.35.
Return on Total Capital for CLF is now 2.72, given the latest momentum, and Return on Invested Capital for the company is -2.22. Return on Equity for this stock declined to -7.90, with Return on Assets sitting at -1.20. When it comes to the capital structure of this company, Cleveland-Cliffs Inc. [CLF] has a Total Debt to Total Equity ratio set at 217.31. Additionally, CLF Total Debt to Total Capital is recorded at 68.48, with Total Debt to Total Assets ending up at 35.71. Long-Term Debt to Equity for the company is recorded at 289.64, with the Long-Term Debt to Total Capital now at 66.84.
Reflecting on the efficiency of the workforce at the company, Cleveland-Cliffs Inc. [CLF] managed to generate an average of -$4,920 per employee. Receivables Turnover for the company is 7.78 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 0.80 and a Current Ratio set at 2.20.
Earnings per share (EPS) analysis for Cleveland-Cliffs Inc. [CLF] stock
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 Ownership positions
There are presently around $8,198 million, or 66.50% of CLF stock, in the hands of institutional investors. The top three institutional holders of CLF stocks are: BLACKROCK INC. with ownership of 54,549,450, which is approximately -10.364% of the company’s market cap and around 1.50% of the total institutional ownership; VANGUARD GROUP INC, holding 42,341,247 shares of the stock with an approximate value of $1.06 billion in CLF stocks shares; and FMR LLC, currently with $735.36 million in CLF stock with ownership of nearly 50.287% of the company’s market capitalization.
Positions in Cleveland-Cliffs Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 258 institutional holders increased their position in Cleveland-Cliffs Inc. [NYSE:CLF] by around 67,981,071 shares. Additionally, 159 investors decreased positions by around 32,458,444 shares, while 43 investors held positions by with 227,479,033 shares. The mentioned changes placed institutional holdings at 327,918,548 shares, according to the latest SEC report filing. CLF stock had 106 new institutional investments in for a total of 13,904,404 shares, while 50 institutional investors sold positions of 5,110,215 shares during the same period.