CLEVELAND, OH – Cleveland-Cliffs Inc. (NYSE:CLF), a leading mining and natural resources company, announced today the resignation of Janet L. Miller from its Board of Directors. Ms. Miller's resignation will be effective as of today.
According to the company's recent 8-K filing with the Securities and Exchange Commission, Ms. Miller's departure is due to personal reasons and is not related to any disagreements with the company's operations, policies, or practices. The filing states that her decision to step down is entirely her own and not indicative of any internal conflicts.
Janet L. Miller has been a part of Cleveland-Cliffs' board for five years, providing her expertise and guidance. The company expressed its gratitude for Ms. Miller's service and contributions during her tenure on the board.
Cleveland-Cliffs, with its headquarters in Cleveland, Ohio, operates within the metal mining industry under the SIC code 1000. The company, formerly known as Cliffs Natural Resources Inc., has undergone name changes in the past but has been a longstanding entity in the sector, with a history dating back to its last name change in 1992.
The announcement comes at a time when Cleveland-Cliffs continues to focus on its core business in the energy and transportation sectors. The company has not yet announced a successor for Ms. Miller or detailed how her departure might affect the composition of the board going forward.
While the company has not provided further details on the future direction of the board, it maintains its commitment to its strategic objectives and governance. The market's response to this change within the company's leadership structure remains to be seen in the coming days.
In other recent news, Cleveland-Cliffs Inc. has been the subject of significant investor attention. The company recently saw a substantial purchase from Congressman Mike Kelly, valued between $50,001 and $100,000. Meanwhile, B.Riley adjusted the price target for Cleveland-Cliffs shares to $23.00, maintaining a Buy rating despite lower hot-rolled coil steel prices. JPMorgan (NYSE:JPM), however, downgraded the company from Overweight to Neutral, reducing the price target to $17 due to revised pricing forecasts and concerns over increasing capital expenditure needs.
Cleveland-Cliffs has also been at the center of a dispute with the U.S. Steel Board regarding potential acquisitions. The company has maintained its commitment to keeping U.S. Steel American-owned, refuting claims made by the board. Amid these developments, Cleveland-Cliffs has revealed a robust rebound in profitability with an adjusted EBITDA of $414 million and initiated a new $1.5 billion share repurchase program. These recent developments reflect the ongoing financial activities and strategic positioning of Cleveland-Cliffs in the steel industry.
InvestingPro Insights
Amidst the backdrop of boardroom changes, Cleveland-Cliffs Inc. (NYSE:CLF) displays a blend of strategic financial metrics and market performance that investors may find noteworthy. An aggressive share buyback program underlines the management's confidence in the company's value, as reflected in a market capitalization of $7.34 billion. This self-assurance is further echoed by a high shareholder yield, an indicator that the company prioritizes returning value to its investors.
From a valuation standpoint, Cleveland-Cliffs' P/E ratio stands at 19.96, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a lower 12.67, suggesting a potentially more attractive investment when accounting for recent earnings. Additionally, the company's strong free cash flow yield is implied by these valuation figures, which could be appealing for those looking for cash-generative businesses.
Investors should note that while the company has been profitable over the last twelve months, two analysts have revised their earnings expectations downwards for the upcoming period. This contrast presents a more nuanced picture of the company's short-term earnings outlook. Moreover, while the gross profit margin stands at 7.2%, it indicates that the company faces challenges in maintaining higher profitability ratios, a common hurdle in the Metals & Mining industry where Cleveland-Cliffs is a prominent player.
For those interested in further insights, there are additional InvestingPro Tips available which can provide a deeper analysis of Cleveland-Cliffs' financial health and market performance. To explore these tips, which could help in making informed investment decisions, visit https://www.investing.com/pro/CLF. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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