CLEVELAND, OH - Cleveland-Cliffs Inc. (NYSE:CLF), a prominent player in the metal mining sector, has reported a significant purchase of its shares by director Michael Ralph S III. According to the latest filings, the director invested a total of $294,800 in the company's stock.
The transaction, dated June 13, 2024, involved the acquisition of 20,000 common shares at a price of $14.74 each. This purchase reflects a strong vote of confidence from the director in the future of Cleveland-Cliffs Inc., as the company continues to navigate the dynamic and competitive landscape of the metal mining industry.
Following the transaction, Michael Ralph S III now owns a total of 199,519 shares in Cleveland-Cliffs, indicating a substantial interest in the company's performance and growth. This move by a member of the company's board is often seen positively by investors, as it aligns the interests of the company's management with those of its shareholders.
Cleveland-Cliffs Inc. has a rich history in the industry, previously known as Cliffs Natural Resources Inc. and Cleveland Cliffs Inc., before adopting its current name. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol CLF, and it maintains its headquarters in the heart of Cleveland, Ohio.
Investors and market watchers often keep a close eye on insider transactions such as this one, as they can provide insights into the company's internal perspectives and expectations. Cleveland-Cliffs Inc. has not yet provided a comment on this latest development, but stakeholders are sure to monitor the impact of this insider purchase on the company's stock performance in the coming weeks and months.
In other recent news, Cleveland-Cliffs has seen several updates in analysts' ratings. B.Riley has revised the company's share price target to $23.00, down from $24.00, due to lower hot-rolled coil (HRC) steel prices, yet maintains a Buy rating. This adjustment also led to a decrease in the second-quarter adjusted EBITDA estimate for Cleveland-Cliffs from $360 million to $286 million. Meanwhile, JPMorgan downgraded Cleveland-Cliffs from Overweight to Neutral and reduced the price target to $17, citing revised pricing forecasts and concerns over increasing capital expenditure needs. However, Jefferies initiated coverage on the company with a Buy rating, highlighting the company's high leverage and potential for increased market share.
In terms of earnings, Cleveland-Cliffs reported a robust rebound in profitability in its first quarter 2024 earnings call, with an adjusted EBITDA of $414 million. The company also initiated a new $1.5 billion share repurchase program, following the buyback of over 30 million shares.
In other developments, Cleveland-Cliffs refuted claims made by the U.S. Steel Board regarding a potential sale of U.S. Steel to a foreign entity, emphasizing its commitment to keeping U.S. Steel American-owned. The company has also been involved in strategic acquisitions and mergers, which analysts believe could strengthen its market position. These are recent developments in the company's operations and strategic initiatives.
InvestingPro Insights
As Cleveland-Cliffs Inc. (NYSE:CLF) captures attention with insider stock purchases, investors are keen on understanding the underlying value and potential of the company. Cleveland-Cliffs, with a market capitalization of approximately $7.02 billion, is trading at a price-to-earnings (P/E) ratio of 19.17, which adjusts to a more attractive 12.11 when considering the last twelve months as of Q1 2024. This adjustment suggests a more favorable earnings perspective relative to the stock price.
The company’s performance is also reflected in its gross profit margin, standing at 7.2% for the last twelve months as of Q1 2024. While this indicates some challenges in profitability, Cleveland-Cliffs is recognized as a significant entity in the Metals & Mining industry, which could imply potential for rebound and growth. Moreover, an InvestingPro Tip highlights that the stock is currently in oversold territory according to the Relative Strength Index (RSI), hinting at a possible turning point for investors considering entry into the market.
Despite recent price declines, with the stock trading near its 52-week low and experiencing a 26.2% year-to-date total return loss as of day 165 of 2024, another InvestingPro Tip reveals that management has been aggressively buying back shares. This could be interpreted as a signal of strong confidence from the company's leadership in its intrinsic value and future prospects. Additionally, with two analysts having revised their earnings downwards for the upcoming period, investors may want to explore the full range of 13 InvestingPro Tips available on InvestingPro to gain a comprehensive understanding of the company's outlook.
For those looking to delve deeper into Cleveland-Cliffs' financials and market position, using the exclusive coupon code PRONEWS24 will secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to valuable insights that can inform investment decisions.
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