Cleveland-Cliffs Sees Unusually High Options Volume (NYSE:CLF)

Cleveland-Cliffs Inc. (NYSE:CLF) was the recipient of some unusual options trading on Monday. Stock traders purchased 106,413 call options on the stock. This represents an increase of approximately 133% compared to the typical daily volume of 45,662 call options.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CLF. JPMorgan Chase & Co. reduced their target price on shares of Cleveland-Cliffs from $13.00 to $12.00 and set a “neutral” rating for the company in a report on Friday, October 9th. Glj Research raised their price target on Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a “buy” rating in a research report on Monday, September 21st. Barclays restated an “underweight” rating and set a $11.00 price objective on shares of Cleveland-Cliffs in a research report on Monday. UBS Group set a $13.00 target price on Cleveland-Cliffs in a report on Monday, September 7th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Cleveland-Cliffs in a research note on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $12.45.

Hedge Funds Weigh In On Cleveland-Cliffs

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Center for Financial Planning Inc. grew its position in Cleveland-Cliffs by 119.0% in the 1st quarter. Center for Financial Planning Inc. now owns 3,322 shares of the mining company’s stock valued at $28,000 after purchasing an additional 1,805 shares during the period. Johnson Financial Group Inc. acquired a new position in Cleveland-Cliffs during the second quarter worth $30,000. Fortitude Family Office LLC raised its holdings in Cleveland-Cliffs by 245.2% during the third quarter. Fortitude Family Office LLC now owns 2,831 shares of the mining company’s stock worth $31,000 after buying an additional 2,011 shares during the last quarter. IFP Advisors Inc lifted its stake in shares of Cleveland-Cliffs by 39.5% in the second quarter. IFP Advisors Inc now owns 5,127 shares of the mining company’s stock valued at $48,000 after buying an additional 1,453 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new position in shares of Cleveland-Cliffs in the second quarter valued at $72,000. 67.68% of the stock is owned by institutional investors and hedge funds.

Key Cleveland-Cliffs News

Here are the key news stories impacting Cleveland-Cliffs this week:

• Positive Sentiment: Third-quarter earnings beat estimates: Cleveland-Cliffs reported adjusted EPS of $0.28, above the $0.24 consensus and significantly better than the $0.45 loss recorded a year earlier. GAAP net income was $165 million, or $0.26 per diluted share. Cleveland-Cliffs Q3 earnings and revenues beat estimates
• Positive Sentiment: Strongest quarter in three years: Adjusted EBITDA reached $612 million, up $326 million sequentially and above the company’s $575 million guidance. Revenue was approximately $5.6 billion, with steel shipments of 4.2 million net tons. Cleveland-Cliffs forecasts 2027 adjusted EBITDA above $4 billion
• Positive Sentiment: Optimistic 2027 outlook: Management expects adjusted EBITDA to exceed $4 billion in 2027, with tariffs and stronger steel pricing helping support the forecast. The outlook gave investors a more favorable view of future cash flow and earnings potential. Cleveland-Cliffs expects 2027 will be a very good year
• Neutral Sentiment: Revenue slightly missed expectations: Quarterly revenue increased 18.5% year over year to $5.61 billion, but it was modestly below analysts’ $5.69 billion forecast. The company also continues to report a negative net margin and negative return on equity. Cleveland-Cliffs quarterly earnings results
• Neutral Sentiment: Analyst target update: Wells Fargo raised its Cleveland-Cliffs price target to $14, reflecting improved expectations following the company’s earnings and outlook. Wells Fargo raises Cleveland-Cliffs stock target

Cleveland-Cliffs Trading Up 15.7%

Shares of NYSE:CLF traded up $1.91 during midday trading on Monday, hitting $14.03. 42,980,132 shares of the stock were exchanged, compared to its average volume of 18,693,559. The business’s 50-day moving average price is $12.01 and its 200 day moving average price is $11.25. Cleveland-Cliffs has a 12 month low of $7.73 and a 12 month high of $16.70. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.63 and a current ratio of 1.89. The stock has a market capitalization of $8.00 billion, a price-to-earnings ratio of -8.69, a P/E/G ratio of 5.73 and a beta of 2.09.

Cleveland-Cliffs (NYSE:CLF) last announced its quarterly earnings results on Monday, October 19th. The mining company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.04. The firm had revenue of $5.61 billion during the quarter, compared to analysts’ expectations of $5.69 billion. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The company’s revenue was up 18.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.51) EPS. Analysts predict that Cleveland-Cliffs will post 0.10 earnings per share for the current year.

About Cleveland-Cliffs

Cleveland-Cliffs Inc is an integrated steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, including the mining and processing of iron ore, production of iron ore pellets, and manufacturing of finished steel products.

Cleveland-Cliffs primarily produces flat-rolled carbon steel, including hot-rolled, cold-rolled and galvanized products, as well as coated and specialty steel. Its products are used in automotive manufacturing, construction, infrastructure, appliances, machinery and other industrial applications.