Cleveland-Cliffs (NYSE:CLF) Stock Falls 9.4% – Here’s Why

Cleveland-Cliffs Inc. (NYSE:CLF) fell 9.4% during trading on Monday. The company traded as low as $11.27 and last traded at $11.0340. Approximately 8,563,831 shares traded hands during trading, a decline of 54% from the average session volume of 18,497,555 shares. The stock had previously closed at $12.18.

Key Headlines Impacting Cleveland-Cliffs

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

• Neutral Sentiment: Despite the selloff, an analysis from GuruFocus suggests Cleveland-Cliffs may be undervalued based on its estimated intrinsic value. This could provide support if investors view the recent decline as excessive. Is Cleveland-Cliffs Inc. a Bargain After 7.9% Drop?
• Neutral Sentiment: A planned $15 billion foreign-owned steel mill in Iowa is expected to begin shipping steel in 2030. The facility could intensify long-term competition for Cleveland-Cliffs, although the impact is several years away and will depend on market demand, product mix and trade policy. A $15 Billion Iowa Steel Mill Is Coming
• Negative Sentiment: Cleveland-Cliffs’ Canadian unit reportedly plans to idle some steel operations at its Stelco facility, citing tariffs. Reduced production could pressure revenue and earnings while highlighting the company’s exposure to cross-border trade disruptions. Cleveland-Cliffs’ Canadian Unit Plans to Idle Some Steel Operations Cleveland-Cliffs to Idle Output at Canada Steel Plant
• Negative Sentiment: The Canadian government says it will do everything possible to ensure Cleveland-Cliffs fulfills its obligations, while reports indicate the company could face legal action over layoffs at Stelco. Potential litigation, government intervention and severance or other compliance costs add uncertainty for investors. Cleveland-Cliffs Could Face Legal Action for Layoffs at Stelco Canada Will Do All It Can to Ensure Cleveland-Cliffs Meets Obligations
• Negative Sentiment: CLF recently fell substantially more than the broader steel group, with analysts attributing the move to company-specific pressure alongside weakness across steel equities. The relative underperformance signals heightened investor concern about Cleveland-Cliffs’ near-term outlook. Cleveland-Cliffs Sinks as Selloff Outruns Steel Group

Wall Street Analysts Forecast Growth

CLF has been the subject of several research reports. Glj Research lifted their price target on shares of Cleveland-Cliffs from $15.60 to $17.48 and gave the company a “buy” rating in a report on Monday, September 21st. JPMorgan Chase & Co. increased their price objective on shares of Cleveland-Cliffs from $11.00 to $13.00 and gave the stock a “neutral” rating in a report on Wednesday, September 9th. Bank of America cut their price objective on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating on the stock in a research report on Thursday, July 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Cleveland-Cliffs in a research note on Tuesday, July 21st. Finally, UBS Group set a $13.00 target price on shares of Cleveland-Cliffs in a research report on Monday, September 7th. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $12.25.

Cleveland-Cliffs Stock Performance

The company has a market cap of $6.29 billion, a P/E ratio of -6.80 and a beta of 2.10. The company has a quick ratio of 0.63, a current ratio of 1.89 and a debt-to-equity ratio of 1.32. The company has a 50 day moving average price of $11.89 and a 200-day moving average price of $10.90.

Cleveland-Cliffs (NYSE:CLF) last issued its quarterly earnings data on Thursday, July 23rd. The mining company reported ($0.20) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.01. The business had revenue of $5.23 billion for the quarter, compared to analysts’ expectations of $5.15 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 5.9% on a year-over-year basis. During the same period in the previous year, the business earned ($0.50) earnings per share. Equities analysts expect that Cleveland-Cliffs Inc. will post -0.04 EPS for the current fiscal year.

Institutional Trading of Cleveland-Cliffs

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Tidal Investments LLC boosted its holdings in shares of Cleveland-Cliffs by 79.2% in the second quarter. Tidal Investments LLC now owns 80,324 shares of the mining company’s stock valued at $754,000 after acquiring an additional 35,506 shares in the last quarter. BlueCrest Capital Management Ltd bought a new position in Cleveland-Cliffs during the 2nd quarter valued at $1,969,000. Engineers Gate Manager LP boosted its stake in Cleveland-Cliffs by 212.9% during the 2nd quarter. Engineers Gate Manager LP now owns 1,407,953 shares of the mining company’s stock valued at $13,221,000 after purchasing an additional 958,049 shares in the last quarter. IFP Advisors Inc increased its position in shares of Cleveland-Cliffs by 39.5% during the 2nd quarter. IFP Advisors Inc now owns 5,127 shares of the mining company’s stock valued at $48,000 after purchasing an additional 1,453 shares during the period. Finally, Baird Financial Group Inc. increased its position in shares of Cleveland-Cliffs by 4.2% during the 2nd quarter. Baird Financial Group Inc. now owns 37,026 shares of the mining company’s stock valued at $348,000 after purchasing an additional 1,496 shares during the period. 67.68% of the stock is currently owned by institutional investors.

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.