Cleveland-Cliffs (CLF) Bonds Drop 1.2% During Trading

An issue of Cleveland-Cliffs Inc (NYSE:CLF) bonds fell 1.2% as a percentage of their face value during trading on Friday. The high-yield debt issue has a 6.25% coupon and will mature on October 1, 2040. The bonds in the issue are now trading at $86.31 and were trading at $84.00 last week. Price changes in a company’s bonds in credit markets often predict parallel changes in its share price.

CLF has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upgraded shares of Cleveland-Cliffs from a “neutral” rating to an “overweight” rating in a report on Monday, July 23rd. Clarkson Capital upgraded shares of Cleveland-Cliffs from a “neutral” rating to a “buy” rating and increased their target price for the company from $7.00 to $11.00 in a research note on Monday, April 23rd. Seaport Global Securities initiated coverage on shares of Cleveland-Cliffs in a research note on Wednesday, May 9th. They issued a “buy” rating and a $10.00 target price for the company. Zacks Investment Research upgraded shares of Cleveland-Cliffs from a “hold” rating to a “buy” rating and set a $8.25 target price for the company in a research note on Wednesday, April 25th. Finally, Macquarie initiated coverage on shares of Cleveland-Cliffs in a research note on Tuesday, June 26th. They issued an “outperform” rating for the company. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and eight have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $10.48.

Shares of Cleveland-Cliffs traded down $0.10, hitting $10.67, during mid-day trading on Friday, according to Marketbeat.com. The company had a trading volume of 13,846,716 shares, compared to its average volume of 14,630,250. The company has a debt-to-equity ratio of -7.50, a quick ratio of 2.53 and a current ratio of 3.26. Cleveland-Cliffs Inc has a 12 month low of $5.60 and a 12 month high of $11.44. The stock has a market cap of $3.18 billion, a PE ratio of 21.34 and a beta of 1.63.

Cleveland-Cliffs (NYSE:CLF) last released its earnings results on Friday, July 20th. The mining company reported $0.76 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.56 by $0.20. Cleveland-Cliffs had a net margin of 20.07% and a negative return on equity of 76.39%. The business had revenue of $714.00 million during the quarter, compared to analysts’ expectations of $653.75 million. During the same quarter last year, the company earned $0.26 earnings per share. The firm’s revenue was up 51.6% on a year-over-year basis. research analysts forecast that Cleveland-Cliffs Inc will post 1.93 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hodges Capital Management Inc. lifted its stake in Cleveland-Cliffs by 51.1% during the second quarter. Hodges Capital Management Inc. now owns 2,473,540 shares of the mining company’s stock worth $20,852,000 after purchasing an additional 836,590 shares during the period. Penn Capital Management Co. Inc. bought a new position in Cleveland-Cliffs during the second quarter worth about $8,066,000. Creative Planning lifted its stake in Cleveland-Cliffs by 27.9% during the second quarter. Creative Planning now owns 1,882,373 shares of the mining company’s stock worth $15,868,000 after purchasing an additional 410,400 shares during the period. Hartford Investment Management Co. bought a new position in Cleveland-Cliffs during the second quarter worth about $298,000. Finally, Alpha Windward LLC bought a new position in Cleveland-Cliffs during the second quarter worth about $491,000. Institutional investors and hedge funds own 65.05% of the company’s stock.

About Cleveland-Cliffs

Cleveland-Cliffs Inc operates as an iron ore mining company in the United States. The company operates four iron ore mines in Michigan and Minnesota; and Koolyanobbing iron ore mining complex located in Western Australia. It sells its products to integrated steel companies and steel producers in the United States and the Asia Pacific.

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