CLEVELAND, OH - Cleveland-Cliffs Inc. (NYSE:CLF) Director Oren Ben has increased his stake in the company, according to a recent filing with the Securities and Exchange Commission. On June 12, Ben purchased 6,700 shares of the metal mining company's common stock, totaling approximately $100,400.
The transaction was executed at a weighted average price of $14.9851 per share, with individual purchases ranging from $14.97 to $14.99. Following this acquisition, Ben's ownership in Cleveland-Cliffs has grown to 14,167 shares.
Investors often monitor insider buying as it may signal confidence in the company's future prospects. Cleveland-Cliffs, with its headquarters in Cleveland, Ohio, is known for its focus on the metal mining industry, operating under the standard industrial classification of metal mining.
The company, formerly known as Cliffs Natural Resources Inc., has undergone name changes in the past, reflecting its evolving business focus and expansion into new areas within the energy and transportation sectors.
This latest purchase by a key company insider underscores a potential positive outlook on Cleveland-Cliffs' position in the market, though it is one of many factors investors consider when evaluating a company's stock. The details of the transaction have been made available publicly, offering transparency to shareholders and the market.
The filing also noted that further information regarding the number of shares bought at each price point within the reported range would be provided upon request, indicating a commitment to regulatory compliance and shareholder communication.
Cleveland-Cliffs has not yet commented on the transaction.
In other recent news, Cleveland-Cliffs has seen significant changes in analyst ratings. B.Riley revised the company's price target to $23.00, maintaining a Buy rating, in response to lower hot-rolled coil (HRC) steel prices, which also led to a reduction in the second-quarter adjusted EBITDA estimate from $360 million to $286 million. Conversely, JPMorgan (NYSE:JPM) 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. Jefferies, however, initiated coverage on Cleveland-Cliffs with a Buy rating, citing the company's high leverage and potential for increased market share.
In terms of earnings and revenue, Cleveland-Cliffs reported a robust rebound in profitability with an adjusted EBITDA of $414 million in the first quarter of 2024. The company also initiated a new $1.5 billion share repurchase program, following the buyback of over 30 million shares. In the realm of mergers and acquisitions, Cleveland-Cliffs has been involved in strategic activities, refuting claims made by the U.S. Steel Board regarding a potential sale of U.S. Steel to a foreign entity, underlining its commitment to keeping U.S. Steel American-owned.
These recent developments highlight Cleveland-Cliffs' proactive approach to enhancing shareholder value and positioning itself for sustainability in the steel industry.
InvestingPro Insights
Amidst the recent insider buying activity at Cleveland-Cliffs Inc. (NYSE:CLF), where Director Oren Ben has notably increased his stake in the company, investors may find additional context in the recent financial metrics and market performance data. Cleveland-Cliffs' market capitalization stands at approximately $7.17 billion, reflecting its substantial presence in the metal mining industry. The company's P/E ratio as of the last twelve months leading up to Q1 2024 is 12.4, which may suggest a potentially attractive valuation relative to earnings.
According to InvestingPro Tips, two noteworthy aspects of Cleveland-Cliffs' current situation include the aggressive share buybacks by management and a high shareholder yield. These actions can often be interpreted as signals of the management's confidence in the company's value and future performance. Additionally, the Relative Strength Index (RSI) indicates that the stock is currently in oversold territory, which might interest investors looking for potential entry points.
However, it's important to consider that analysts have revised their earnings expectations downwards for the upcoming period, which could influence the stock's future performance. Moreover, while the company does not pay a dividend, it has been profitable over the last twelve months, and analysts predict it will remain profitable this year.
Investors seeking a deeper analysis of Cleveland-Cliffs and additional InvestingPro Tips can find more insights at Investing.com/pro/CLF. For those interested in a yearly or biyearly Pro and Pro+ subscription, use coupon code PRONEWS24 to get an additional 10% off. There are currently 12 additional InvestingPro Tips available, offering a comprehensive view of the company's financial health and market position.
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