Cleveland-Cliffs Inc. (NYSE:CLF) director Taylor Douglas C has sold a total of 36,000 shares of the company, according to a recent SEC filing. The shares were sold at a weighted average price of $14.8673, with transaction prices ranging from $14.85 to $14.92. The total value of the shares disposed of amounted to over $535,222.
The transactions, which took place on June 11, 2024, were reported in a Form 4 document filed with the Securities and Exchange Commission. After the sale, Taylor Douglas C still owns 100,536.21 shares in Cleveland-Cliffs directly. The company, with its headquarters in Cleveland, Ohio, operates within the metal mining industry and has a longstanding presence in the sector.
Investors and the market typically monitor insider transactions as they can provide insights into an executive's view of the company's stock value and financial health. The details provided in the SEC filing include the range of prices at which the shares were sold, ensuring transparency and allowing shareholders to understand the nature of the transactions.
Cleveland-Cliffs has not made any official statement regarding the transactions, and it remains a matter for individual investors to interpret the significance of this insider activity within the broader context of the company's performance and market activities.
The SEC document was signed by power of attorney James D. Graham, indicating that he is authorized to execute such documents on behalf of Taylor Douglas C. The filing remains part of the public record, providing investors with critical information about the transactions made by company insiders.
In other recent news, Cleveland-Cliffs experienced a fluctuation in its stock outlook with B.Riley revising the price target to $23.00, a decrease from the previous target of $24.00, citing lower hot-rolled coil (HRC) steel prices. This led to a reduction in the second-quarter adjusted EBITDA estimate from $360 million to $286 million. Despite this, the firm maintains a Buy rating on the stock. Meanwhile, JPMorgan (NYSE:JPM) downgraded Cleveland-Cliffs from Overweight to Neutral and reduced the price target to $17, reflecting revised pricing forecasts and concerns over increasing capital expenditure needs.
In terms of earnings, the first quarter 2024 earnings call revealed a robust rebound in profitability with an adjusted EBITDA of $414 million. Cleveland-Cliffs also initiated a new $1.5 billion share repurchase program, following the buyback of over 30 million shares.
Jefferies initiated coverage on Cleveland-Cliffs with a Buy rating, citing the company's high leverage and potential for increased market share. The company has also been engaged in strategic acquisitions and mergers, which analysts believe could strengthen its market position.
Cleveland-Cliffs refuted claims made by the U.S. Steel Board regarding a potential sale of U.S. Steel to a foreign entity, emphasizing its commitment to keeping U.S. Steel American-owned. These are recent developments that have been shaping the company's trajectory in the steel industry.
InvestingPro Insights
The recent insider sale of Cleveland-Cliffs Inc. (NYSE:CLF) shares by director Taylor Douglas C has caught the attention of investors, as insider transactions often do. In light of this event, a closer look at some key metrics from InvestingPro can provide additional context to the company's current financial standing and stock performance.
As of the last twelve months as of Q1 2024, Cleveland-Cliffs boasts a market capitalization of $7.07 billion, reflecting the company's substantial size within the metals and mining industry. Despite a slight decline in revenue growth of -1.92%, the company maintains a gross profit of $1.577 billion with a gross profit margin of 7.2%. This profitability is further underscored by an operating income of $1.126 billion, resulting in an operating income margin of 5.14%.
InvestingPro Tips highlight that Cleveland-Cliffs has been aggressively buying back shares, which could be a signal of management's confidence in the company's value. Additionally, the stock is currently trading near its 52-week low and has been identified as being in oversold territory according to the Relative Strength Index (RSI), suggesting potential for a rebound. These aspects, combined with a strong free cash flow yield implied by its valuation, present a noteworthy picture for prospective investors.
For those interested in a deeper analysis, there are additional InvestingPro Tips available for Cleveland-Cliffs, which can be accessed through InvestingPro's platform. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could help in making informed investment decisions.
It's also important to note that Cleveland-Cliffs does not pay dividends, which may influence investment strategies depending on individual investor preferences for income-generating stocks. Keeping an eye on the upcoming earnings date on July 19, 2024, will be crucial for investors to gauge the company's trajectory in the near term.
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