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

Cleveland-Cliffs Inc. (NYSE:CLF) was the target of some unusual options trading activity on Monday. Investors acquired 106,413 call options on the stock. This is an increase of approximately 133% compared to the average volume of 45,662 call options.

Cleveland-Cliffs Stock Performance

CLF stock traded up $1.91 during midday trading on Monday, hitting $14.03. The company’s stock had a trading volume of 42,980,132 shares, compared to its average volume of 18,693,559. The stock’s 50-day moving average price is $12.01 and its 200 day moving average price is $11.25. The company has a quick ratio of 0.63, a current ratio of 1.89 and a debt-to-equity ratio of 1.32. Cleveland-Cliffs has a 1 year low of $7.73 and a 1 year high of $16.70. The stock has a market cap of $8.00 billion, a price-to-earnings ratio of -8.69, a PEG ratio of 5.73 and a beta of 2.09.

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

Institutional Trading of Cleveland-Cliffs

Several hedge funds have recently added to or reduced their stakes in the stock. IFP Advisors Inc boosted its stake in 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 acquiring an additional 1,453 shares during the last quarter. Baird Financial Group Inc. increased its stake 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 worth $348,000 after purchasing an additional 1,496 shares during the last quarter. Versant Capital Management Inc increased its stake in shares of Cleveland-Cliffs by 24.3% during the 2nd quarter. Versant Capital Management Inc now owns 8,243 shares of the mining company’s stock worth $77,000 after purchasing an additional 1,614 shares during the last quarter. Center for Financial Planning Inc. increased its stake in shares of Cleveland-Cliffs by 119.0% during the 1st quarter. Center for Financial Planning Inc. now owns 3,322 shares of the mining company’s stock worth $28,000 after purchasing an additional 1,805 shares during the last quarter. Finally, Cloverfields Capital Group LP raised its holdings in shares of Cleveland-Cliffs by 3.3% in the 1st quarter. Cloverfields Capital Group LP now owns 62,094 shares of the mining company’s stock worth $525,000 after purchasing an additional 1,979 shares during the period. Institutional investors own 67.68% of the company’s stock.

Cleveland-Cliffs News Summary

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Morgan Stanley reiterated an “equal weight” rating and set a $12.50 price target (up from $12.00) on shares of Cleveland-Cliffs in a research note on Monday, June 22nd. Bank of America lowered their price objective on Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating for the company in a research note on Thursday, July 9th. Wells Fargo & Company upgraded Cleveland-Cliffs from an “equal weight” rating to an “overweight” rating and raised their target price for the company from $12.00 to $14.00 in a report on Tuesday, October 6th. Barclays restated an “underweight” rating and issued a $11.00 target price on shares of Cleveland-Cliffs in a report on Monday. Finally, Citigroup reaffirmed a “positive” rating on shares of Cleveland-Cliffs in a research report on Friday, July 24th. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $12.45.

Cleveland-Cliffs Company Profile

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.