Cleveland-Cliffs (NYSE:CLF) Shares Down 6.9% – Here’s What Happened

Shares of Cleveland-Cliffs Inc. (NYSE:CLF) dropped 6.9% during trading on Tuesday. The company traded as low as $12.63 and last traded at $13.1260. 8,713,336 shares traded hands during trading, a decline of 54% from the average daily volume of 18,850,313 shares. The stock had previously closed at $14.10.

Trending Headlines about Cleveland-Cliffs

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

• Positive Sentiment: Strong third-quarter turnaround: Cleveland-Cliffs reported $5.6 billion in revenue, $165 million in GAAP net income and $612 million in adjusted EBITDA. Earnings of $0.28 per share exceeded the $0.24 analyst consensus, while revenue increased 18.5% year over year. Cleveland-Cliffs Posts Strongest Quarter in 3 Years
• Positive Sentiment: Optimistic 2027 outlook: Management expects adjusted EBITDA to exceed $4 billion in 2027, supported by stronger steel prices, improved operations and contract renewals that could contribute roughly $1 billion of EBITDA. The outlook fueled Monday’s rally and remains the primary bullish catalyst. Cleveland-Cliffs forecasts 2027 adjusted EBITDA above $4B
• Positive Sentiment: Improving technical and valuation signals: CLF moved above its 20-day moving average, suggesting stronger near-term momentum. Several analyses also characterized the stock as attractively valued relative to potential future earnings. Cleveland-Cliffs Overtook the 20-Day Moving Average
• Neutral Sentiment: Heavy options activity: Traders bought 106,413 call options, approximately 133% above average daily volume, indicating elevated speculative interest but not guaranteeing further gains.
• Negative Sentiment: Profit-taking after a major advance: The stock retreated as investors locked in gains from Monday’s roughly 16% surge after the earnings release. The move suggests enthusiasm around the outlook may have been partially priced in.
• Negative Sentiment: Results were not uniformly strong: Quarterly revenue of $5.61 billion came in slightly below the $5.69 billion consensus, and the company continues to carry meaningful leverage. Investors may therefore remain sensitive to steel prices, execution and the delivery of the ambitious 2027 forecast.

Wall Street Analysts Forecast Growth

CLF has been the subject of a number of research analyst reports. Bank of America cut their price target on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating for the company in a report on Thursday, July 9th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $13.00 target price on shares of Cleveland-Cliffs in a report on Tuesday. JPMorgan Chase & Co. lowered their price target on Cleveland-Cliffs from $13.00 to $12.00 and set a “neutral” rating on the stock in a report on Friday, October 9th. UBS Group set a $13.00 price objective on Cleveland-Cliffs in a research report on Monday, September 7th. Finally, Citigroup restated a “positive” rating on shares of Cleveland-Cliffs in a report on Friday, July 24th. Three investment 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’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $13.20.

Cleveland-Cliffs Stock Performance

The company has a market cap of $7.72 billion, a P/E ratio of -8.34, a price-to-earnings-growth ratio of 5.73 and a beta of 2.09. 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 stock’s 50-day moving average price is $12.05 and its 200 day moving average price is $11.29.

Cleveland-Cliffs (NYSE:CLF) last released its earnings results on Monday, October 19th. The mining company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.04. Cleveland-Cliffs had a negative net margin of 4.56% and a negative return on equity of 13.37%. The firm had revenue of $5.61 billion during the quarter, compared to analyst estimates of $5.69 billion. During the same quarter in the previous year, the business earned ($0.51) EPS. The business’s revenue was up 18.5% on a year-over-year basis. As a group, research analysts expect that Cleveland-Cliffs Inc. will post 0.10 EPS for the current fiscal year.

Institutional Trading of Cleveland-Cliffs

Several hedge funds and other institutional investors have recently bought and sold shares of CLF. Counterpoint Mutual Funds LLC grew its position in Cleveland-Cliffs by 697.8% in the third quarter. Counterpoint Mutual Funds LLC now owns 764,915 shares of the mining company’s stock valued at $8,422,000 after acquiring an additional 669,035 shares during the period. Vontobel Holding Ltd. bought a new stake in shares of Cleveland-Cliffs during the third quarter worth $140,000. TD Waterhouse Canada Inc. increased its stake in shares of Cleveland-Cliffs by 15.3% in the third quarter. TD Waterhouse Canada Inc. now owns 58,262 shares of the mining company’s stock valued at $668,000 after buying an additional 7,743 shares in the last quarter. Fortitude Family Office LLC increased its stake in shares of Cleveland-Cliffs by 245.2% in the third quarter. Fortitude Family Office LLC now owns 2,831 shares of the mining company’s stock valued at $31,000 after buying an additional 2,011 shares in the last quarter. Finally, 4WEALTH Advisors Inc. increased its position in Cleveland-Cliffs by 113.5% in the 3rd quarter. 4WEALTH Advisors Inc. now owns 49,134 shares of the mining company’s stock valued at $541,000 after acquiring an additional 26,122 shares in the last quarter. 67.68% of the stock is currently owned by institutional investors and hedge funds.

Cleveland-Cliffs Company Profile

Cleveland-Cliffs Inc is an integrated North American steel producer headquartered in Cleveland, Ohio. The company operates across the steelmaking value chain, from mining and processing iron ore to producing and distributing finished steel products. Its operations include iron ore mines and pelletizing facilities, steel mills, finishing plants, and related manufacturing and distribution assets.

The company produces carbon steel, stainless steel, electrical steel, and other specialty products, including hot-rolled, cold-rolled, and galvanized sheet steel.