Texas Permanent School Fund, a large institutional investor, recently cut its holdings in Cleveland-Cliffs Inc. (NYSE:CLF) by 6.9% during the fourth quarter of the financial year. According to the company’s most recent 13F filing with the Securities and Exchange Commission, Texas Permanent School Fund owned 346,432 shares of CLF worth $5,581,000 as of its most recent SEC filing.
Cleveland-Cliffs Inc., formerly known as Cliffs Natural Resources Inc., is the largest flat-rolled steel company and iron ore pellet producer in North America. The vertically integrated company imports raw materials from overseas and also owns mines and logistics facilities in America. It produces various grades of iron ore pellets through North American operations located on Minnesota’s Mesabi Iron Range together with other mining assets in Alaska and Michigan. Additionally, it operates the largest iron ore shipping fleet in North America which supports its steelmaking operations.
Several equities analysts have issued reports on CLF shares recently. Citigroup increased their price target on Cleveland-Cliffs from $16.00 to $22.00 while Goldman Sachs Group boosted their price objective on Cleveland Cliffs from $18 to $23 noting Cleveland–Cliffs initiatives can drive substantial value creation beyond current financial performance.
Wolfe Research updated their rating from underperformed to peer perform note while B.Riley reduced their price objectives for CLFs stock prices from a high of $27.0 to $26 per share and maintaining buy status ratings even after some negative investor events mid-last year.
Morgan Stanley also upgraded shares of Cleveland-Cliffs stating there is more potential growth ahead given that CLFs current market cap valuation represents less than half its replacement costs.
Overall, analysts remain bullish about CLF’s future potential growth with an average rating of “Hold” and a consensus price target of $22.11 based on data compiled by Bloomberg. The company is relentlessly focused on expanding its business and bringing in higher profit margins in the coming periods despite some market challenges faces.
Cleveland-Cliffs: A Steel Production Powerhouse on the Rise
Cleveland-Cliffs: A Vertical Steel Production Powerhouse
North America’s largest flat-rolled steel company and the biggest iron ore pellet producer, Cleveland-Cliffs Inc., has caught the attention of several hedge funds and institutional investors. Among those changing their positions in the stock, Destiny Wealth Partners LLC purchased a stake in Cleveland-Cliffs during Q4 2020 valued at $32,000. Lazard Asset Management LLC grew its stake by 218.1% in Q1 2021 to now own 1,088 shares of the mining company’s stock, valued at $35,000 after purchasing an additional 746 shares recently. Quadrant Capital Group LLC raised its stake in shares of Cleveland-Cliffs by 108.6% during Q3 of last year and Wipfli Financial Advisors LLC also scooped up stock purchases valued at approximately $51,000.
The CEO Lourenco Goncalves acquired 100,000 shares of common stock currently trading on NYSE CLF which were purchased at an average cost price of $14.96 per share on Thursday, April 27th, making this transaction worth $1,496,000.00. Subsequent to this transaction he holds direct interest with ownership over 2,464,885 company stocks estimated to be valued at about $36,874,679.60. Also on April 27th EVP Keith Koci bought 7,300 shares for $108551 at an average price of $14.87 per share where he owns direct possession of a total approximately equivalent to around $5 million.
Cleveland-Cliffs has been operating for over a century with a rich yet arduous history dating back to its founding years through various acquisitions that morphed the name from Cliffs Natural Resources Inc to Cleveland-Cliffs Incorporation as we know it today since August 2017.There are several divisions within the company ranging from mining iron and steel making, rolling, finishing as well as hot and cold-stamping of steel parts and components. The company is known for its remarkable prowess in keeping up with eco-minded trends to provide efficient environmentally friendly services while maintaining economic relevance.
The current market situation indicates that Cleveland-Cliffs Inc. has a PE ratio of 15.84 with a beta of 2.22. According to the financial data obtained alongside insider transactions reports, the company’s stock traded at $14.26 on Friday morning’s opening which suggests an increase in price stability. The company made an impressionable Q1 2021 revenue result amounting to $5.30 billion versus their predicted $5.21 billion mark set by analysts while also recording a positive net margin and return on equity; Cleveland-Cliffs continues to remain optimistic for the present financial year with sell-side analysts predicting an EPS of 2.06.
In conclusion, Cleveland-Cliffs’ unique production strategy is perhaps what sets it apart from other companies operating in this sector, which has attracted institutional investors such as hedge funds given the return on equity currently experienced alongside their commitment towards environmental responsibility through sustainable operations revealing long-term viability and competitiveness in today’s market climate while ensuring customer satisfaction through high-quality standards which clients find most appealing about Cleveland-Cliffs Inc.`
