Cleveland-Cliffs Inc. (CLF) shares are trading at lower $11.99 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $9.73.
To add more color to this target, the company’s high over the last year is $12.55 and the low is $2.63. Over the last 52 weeks, CLF is up 51.01% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CLF reported a profit of $120.6 million. Cleveland-Cliffs Inc. also saw revenues increase to $1.65 billion. In addition, CLF has free cash flow of -$432.1 million as of 09-2020. The company’s EBITDA came in at $125.0 million which compares well with its peers.
CLF booked profit margins of -3.40%, its Return on Equity (ROE) is -17.10%, and its Return on Assets is -1.70%. All told, it is clear that, CLF needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CLF has a short ratio of 5.97 and outstanding shares of 399.40M.
CLF has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 14.2 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.28. Cleveland-Cliffs Inc. CLF also noted assets of $8.48 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CLF has historically followed its peers on positive news.
All told, Cleveland-Cliffs Inc. CLF has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CLF represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Cleveland-Cliffs Inc. CLF is now commanding a market cap of 4.74B and a float of 393.01M. CLF is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CLF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CLF, either long or short, and we have not been compensated for this article.