Cleveland-Cliffs (NYSE:CLF) Stock Sees Unusually High Put Option Buying

Cleveland-Cliffs Inc. (NYSE:CLF) was the recipient of unusually large options trading activity on Wednesday. Traders bought 77,824 put options on the company. This represents an increase of 54% compared to the average volume of 50,450 put options.

Cleveland-Cliffs Stock Down 8.6%

NYSE CLF traded down $1.22 during trading on Wednesday, reaching $12.93. 18,734,166 shares of the company’s stock traded hands, compared to its average volume of 19,217,535. Cleveland-Cliffs has a 12-month low of $7.73 and a 12-month high of $15.35. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.87 and a quick ratio of 0.64. The firm has a market cap of $7.37 billion, a price-to-earnings ratio of -15.20, a price-to-earnings-growth ratio of 5.92 and a beta of 1.99. The company’s 50 day simple moving average is $12.51 and its two-hundred day simple moving average is $11.41.

Cleveland-Cliffs (NYSE:CLF) last announced its quarterly earnings results on Monday, October 19th. The mining company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.04. Cleveland-Cliffs had a negative net margin of 2.36% and a negative return on equity of 6.83%. The firm had revenue of $5.61 billion during the quarter, compared to analysts’ expectations of $5.69 billion. During the same quarter in the prior year, the company earned ($0.51) EPS. The company’s revenue was up 18.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Cleveland-Cliffs will post 0.11 EPS for the current fiscal year.

Wall Street Analyst Weigh In

CLF has been the topic of a number of research analyst reports. Bank of America dropped their target price on shares of Cleveland-Cliffs from $14.00 to $11.50 and set a “neutral” rating on the stock in a research note on Thursday, July 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cleveland-Cliffs in a research note on Monday, October 19th. JPMorgan Chase & Co. boosted their price target on Cleveland-Cliffs from $12.00 to $13.00 and gave the company a “neutral” rating in a report on Thursday, October 22nd. The Goldman Sachs Group reissued a “neutral” rating and issued a $13.00 price objective on shares of Cleveland-Cliffs in a research note on Tuesday, October 20th. Finally, Glj Research raised their price objective on Cleveland-Cliffs from $15.60 to $17.48 and gave the stock a “buy” rating in a report on Monday, September 21st. Three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $14.18.

Insider Activity at Cleveland-Cliffs

In related news, Director Edilson Camara purchased 7,400 shares of Cleveland-Cliffs stock in a transaction that occurred on Thursday, October 22nd. The shares were bought at an average price of $13.49 per share, with a total value of $99,826.00. Following the purchase, the director directly owned 64,717 shares of the company’s stock, valued at approximately $873,032.33. This represents a 12.91% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.95% of the company’s stock.

Hedge Funds Weigh In On Cleveland-Cliffs

A number of large investors have recently bought and sold shares of the business. Fulcrum Asset Management LLP increased its stake in shares of Cleveland-Cliffs by 27,538.7% in the 3rd quarter. Fulcrum Asset Management LLP now owns 46,433 shares of the mining company’s stock valued at $511,000 after purchasing an additional 46,265 shares in the last quarter. StoneX Group Inc. purchased a new position in Cleveland-Cliffs during the third quarter worth approximately $201,000. CenterBook Partners LP purchased a new position in Cleveland-Cliffs during the third quarter worth approximately $218,000. International Assets Investment Management LLC boosted its position in Cleveland-Cliffs by 1.3% during the third quarter. International Assets Investment Management LLC now owns 273,286 shares of the mining company’s stock worth $3,135,000 after purchasing an additional 3,400 shares in the last quarter. Finally, Kestra Advisory Services LLC grew its holdings in Cleveland-Cliffs by 5.5% in the third quarter. Kestra Advisory Services LLC now owns 103,527 shares of the mining company’s stock valued at $1,140,000 after purchasing an additional 5,351 shares during the period. Institutional investors own 67.68% of the company’s stock.

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.