why Cleveland-Cliffs Inc. [CLF] is a Good Choice for Investors After New Price Target of $17.07

Cleveland-Cliffs Inc. [NYSE: CLF] traded at a low on 12/09/22, posting a -4.08 loss after which it closed the day’ session at $15.50. The company report on December 7, 2022 that Cleveland-Cliffs Submits Application for Front-End Engineering Design for Large-Scale Carbon Capture.


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Cleveland-Cliffs Inc. (NYSE: CLF) announced that its initial phase of research being conducted with funding from the U.S. Department of Energy’s (DOE) Office of Clean Energy Demonstrations (OCED) is coming to a close. Based on the results of the initial study, Cleveland-Cliffs has submitted an application on Monday, Dec. 5 for funding from the DOE’s OCED for the next phase of research for the front-end engineering design (FEED) for large-scale carbon capture at its Burns Harbor integrated iron and steel facility located in Northwest Indiana.

The Company’s Burns Harbor project aims to capture up to 2.8 million tons of CO2 per year from blast furnace gas with a net carbon capture efficiency of at least 95%. The proposed FEED would be completed over a period of 24 months. The study would be funded 50 percent by Cleveland-Cliffs and 50 percent by the DOE through the Bipartisan Infrastructure Law appropriations, which is part of a broader government approach to fund domestic commercial-scale Carbon Capture and Sequestration technology.

The results of the trading session contributed to over 8788135 shares changing hands. Over the past one week, the price volatility of Cleveland-Cliffs Inc. stands at 4.50% while the volatility over the past one month is 5.12%.

The market cap for CLF stock reached $8.33 billion, with 516.00 million shares outstanding and 508.28 million shares in the current float. Compared to the average trading volume of 13.82M shares, CLF reached a trading volume of 8788135 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $17.07 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 2.80. 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.

Wolfe Research have made an estimate for Cleveland-Cliffs Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on November 02, 2022. The new note on the price target was released on October 18, 2022, representing the official price target for Cleveland-Cliffs Inc. stock. Previously, the target price had yet another raise to $23, while Wolfe Research analysts kept a Peer Perform rating on CLF stock.

The Average True Range (ATR) for Cleveland-Cliffs Inc. is set at 0.81, with the Price to Sales ratio for CLF stock in the period of the last 12 months amounting to 0.36. The Price to Book ratio for the last quarter was 1.14, with the Price to Cash per share for the same quarter was set at 0.10. Price to Free Cash Flow for CLF in the course of the last twelve months was 3.92 with Quick ratio for the last quarter at 0.80.

How has CLF stock performed recently?

Cleveland-Cliffs Inc. [CLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.60. With this latest performance, CLF shares gained by 18.77% in over the last four-week period, additionally sinking by -21.08% over the last 6 months – not to mention a drop of -26.26% 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 51.76, with the RSI for the last a single of trading hit 49.95, and the three-weeks RSI is set at 51.58 for Cleveland-Cliffs Inc. [CLF]. The present Moving Average for the last 50 days of trading for this stock 14.82, while it was recorded at 15.88 for the last single week of trading, and 19.78 for the last 200 days.

Cleveland-Cliffs Inc. [CLF]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Cleveland-Cliffs Inc. [CLF] shares currently have an operating margin of +20.36 and a Gross Margin at +21.88. Cleveland-Cliffs Inc.’s Net Margin is presently recorded at +14.60.

Return on Equity for this stock inclined to 72.40, with Return on Assets sitting at 16.70.

Cleveland-Cliffs Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 2.30.

Earnings analysis for Cleveland-Cliffs Inc. [CLF]

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%.

Insider trade positions for Cleveland-Cliffs Inc. [CLF]

There are presently around $5,309 million, or 67.60% of CLF stock, in the hands of institutional investors. The top three institutional holders of CLF stocks are: BLACKROCK INC. with ownership of 54,108,703, which is approximately 2.091% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 45,757,539 shares of the stock with an approximate value of $709.24 million in CLF stocks shares; and FMR LLC, currently with $351.91 million in CLF stock with ownership of nearly 1.397% of the company’s market capitalization.

Positions in Cleveland-Cliffs Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 317 institutional holders increased their position in Cleveland-Cliffs Inc. [NYSE:CLF] by around 42,281,715 shares. Additionally, 272 investors decreased positions by around 21,671,851 shares, while 97 investors held positions by with 278,589,222 shares. The mentioned changes placed institutional holdings at 342,542,788 shares, according to the latest SEC report filing. CLF stock had 75 new institutional investments in for a total of 21,555,406 shares, while 85 institutional investors sold positions of 5,629,118 shares during the same period.

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