Cleveland-Cliffs Target of Unusually High Options Trading (NYSE:CLF)

Cleveland-Cliffs Inc. (NYSE:CLF) was the recipient of some unusual options trading on Thursday. Stock traders bought 63,369 call options on the stock. This represents an increase of 49% compared to the average daily volume of 42,412 call options.

Cleveland-Cliffs Stock Down 1.9 %

CLF opened at $17.88 on Friday. Cleveland-Cliffs has a one year low of $13.61 and a one year high of $22.97. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.62 and a current ratio of 1.90. The stock’s fifty day moving average is $20.91 and its 200-day moving average is $18.99. The company has a market capitalization of $8.50 billion, a PE ratio of 24.16, a P/E/G ratio of 0.64 and a beta of 2.03.

Cleveland-Cliffs (NYSE:CLF) last posted its quarterly earnings data on Monday, April 22nd. The mining company reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.01). The firm had revenue of $5.20 billion during the quarter, compared to the consensus estimate of $5.34 billion. Cleveland-Cliffs had a return on equity of 8.69% and a net margin of 1.78%. The firm’s quarterly revenue was down 1.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.11) EPS. On average, equities analysts predict that Cleveland-Cliffs will post 1.66 EPS for the current fiscal year.

Cleveland-Cliffs declared that its Board of Directors has initiated a share buyback program on Monday, April 22nd that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the mining company to repurchase up to 17.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Cleveland-Cliffs

In other Cleveland-Cliffs news, Director Susan Miranda Green sold 6,500 shares of the company’s stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $20.40, for a total transaction of $132,600.00. Following the completion of the sale, the director now directly owns 90,286 shares in the company, valued at $1,841,834.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, Director Arlene M. Yocum purchased 2,000 shares of the company’s stock in a transaction on Wednesday, March 6th. The stock was bought at an average cost of $20.02 per share, for a total transaction of $40,040.00. Following the completion of the purchase, the director now directly owns 94,887 shares of the company’s stock, valued at approximately $1,899,637.74. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Susan Miranda Green sold 6,500 shares of the company’s stock in a transaction dated Wednesday, March 13th. The stock was sold at an average price of $20.40, for a total value of $132,600.00. Following the sale, the director now owns 90,286 shares of the company’s stock, valued at $1,841,834.40. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 221,066 shares of company stock worth $4,464,688. 1.76% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cleveland-Cliffs

Hedge funds have recently modified their holdings of the stock. Rise Advisors LLC grew its holdings in shares of Cleveland-Cliffs by 2,858.0% in the 1st quarter. Rise Advisors LLC now owns 1,479 shares of the mining company’s stock worth $34,000 after acquiring an additional 1,429 shares during the last quarter. Anchor Investment Management LLC purchased a new position in shares of Cleveland-Cliffs during the fourth quarter valued at $31,000. Lindbrook Capital LLC grew its stake in Cleveland-Cliffs by 83.7% during the 4th quarter. Lindbrook Capital LLC now owns 1,571 shares of the mining company’s stock valued at $32,000 after acquiring an additional 716 shares in the last quarter. HighMark Wealth Management LLC acquired a new position in shares of Cleveland-Cliffs in the 4th quarter valued at about $35,000. Finally, Hexagon Capital Partners LLC lifted its position in shares of Cleveland-Cliffs by 41.7% in the first quarter. Hexagon Capital Partners LLC now owns 1,700 shares of the mining company’s stock worth $39,000 after purchasing an additional 500 shares in the last quarter. 67.68% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on CLF shares. Argus lowered Cleveland-Cliffs from a “buy” rating to a “hold” rating in a research report on Thursday, February 8th. StockNews.com downgraded Cleveland-Cliffs from a “buy” rating to a “hold” rating in a research note on Friday. TheStreet downgraded Cleveland-Cliffs from a “b-” rating to a “c” rating in a research note on Tuesday, January 30th. JPMorgan Chase & Co. cut their target price on Cleveland-Cliffs from $24.00 to $23.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, Morgan Stanley reaffirmed an “equal weight” rating and set a $20.00 target price on shares of Cleveland-Cliffs in a research note on Tuesday, March 26th. Two research analysts have rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Cleveland-Cliffs presently has an average rating of “Hold” and a consensus price target of $20.75.

About Cleveland-Cliffs

Cleveland-Cliffs is the largest flat-rolled steel company and the largest iron ore pellet producer in North America. The company is vertically integrated from mining through iron making, steelmaking, rolling, finishing and downstream with hot and cold stamping of steel parts and components. The company was formerly known as Cliffs Natural Resources Inc and changed its name to Cleveland-Cliffs Inc in August 2017.