Heavy Insider Trading Reported At Cleveland-Cliffs Inc. (CLF)

With 0.16 sell/buy ratio, Cleveland-Cliffs Inc. (NYSE:CLF) experienced more insider buying than insider selling over the last three months. Could this be a sign for outside investors to start buying as well? CLF recorded 1 sales on the open market in the last three months. They sold nearly 1,170 shares while purchases amounted to 7,338 shares that period. Looking even further back to 12 months, corporate insiders offloaded 120,359 shares when buyers snapped up 834,730 shares. The 12-month’s totals signify about a 0.14-to-1 sell/buy ratio.

Rychel Eric M gathered a total of 5 thousand shares of Cleveland-Cliffs Inc. (CLF) at average share price of $7.48. This insider trade in the company took place on 04/27/2018. The total for the purchase was set at $37.4 thousand. After this transaction, the Director account balance stood at 19.85 thousand shares. The stock grew 14.97 percent since that insider purchase. On 03/06/2018, Green Susan Miranda, Director, sold 11.31 thousand shares at a price per share of $7.62. This removed 86.14 thousand shares from the insider’s fortune and the stock saw a 12.86 percent rally in value since the news became public. This transaction left 60.37 thousand shares in the Director account.

On 09/15/2017, Chairman, President & CEO Goncalves Lourenco performed a purchase transaction worth $711 thousand. This purchase at $7.11 each has added 100 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 20.96 percent increase since the transaction was reported. The insider now is left with 3.59 million shares remaining in the account. Goncalves Lourenco, who performs the Chairman, President & CEO job, bought 100 thousand shares for $719 thousand. The acquisition occurred on 08/10/2017 was priced at $7.19 per share. The share price soared 19.61 percent since the reporting date. Goncalves Lourenco now left with a stake of 3.49 million CLF stock worth $29.99 million after the insider buying.

The 12-month median price target for Cleveland-Cliffs Inc. (CLF) assigned by the analysts stands at $11, which represents a return potential of 27.91 percent when compared to the closing price of the stock of $8.6 on Friday, January 11. The lowest price target for the stock is $8.5 — slightly more than -1.16 percent from CLF’s current share price. The stock will probably climb 31.98 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $15-month high price target. This represents a whopping 74.42 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 51.49 on daily chart, which may remain a cause for concern. If the price breaks below $8.37 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.73 mark may result into a pull-back move towards $8.87 level. The stock is currently hovering around the first support level of $8.48. Below this, the next support is placed in the zone of $8.37. Till the time, the CLF stock trades above this level, bulls have nothing to fear.

Shares of Cleveland-Cliffs Inc. (CLF) are trading at a P/E ratio of 15.48 times earnings reported for the past 12 months. The industry CLF operates in has an average P/E of 24.14. Its P/E ratio went as low as 1X and as high as 8.68 over the 5-year span. Further, it is sporting a 1.17 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 31.7 percent is the gross profit margin for Cleveland-Cliffs Inc. and operating margin sits at 27.2 percent. Along with this, the net profit margin is 37 percent.

On 11th of January, Cleveland-Cliffs Inc. (NYSE:CLF) shares ended lower after a volatile session. The shares dropped -0.16 points or -1.83 percent at $8.6 with a light trade volume of 6.008 million shares. After opening the session at $8.67, the shares went as high as $8.75 and as low as $8.5, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.61 billion and now has 303.56 million shares outstanding. Cleveland-Cliffs Inc. (CLF) stock has lost -4.44 percent of market value in 21 trading days.

In last reported earnings results, CLF earned $1.41 per share, better than the $0.66, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $742M, better than the $721M analysts expected. Earnings are estimated to increase by -107.7 percent this year, -25.34 percent next year and continue to increase by -2.74 percent annually for the next 5 years. Investors will get their next glimpse of CLF’s Q4 earnings on February 08. Analysts are forecasting revenue to climb 24.9 percent to $751M in the next fiscal quarter, while earnings are seen soaring by nearly 173.91 percent to $0.63 per share. History has shown that shares in Cleveland-Cliffs Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings.

CLF stock has a trailing 3-year beta of 1.53, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.05 a share in the trailing twelve months. The stock’s value has surged 11.83 percent year to date (YTD) against a rise of 6.83 percent in 12 month’s time. The company’s shares still trade -34.35 percent away from its 1-year high of $13.10 and 36.51 percent up from 52-week low of $6.30. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.