Ben Oren Of Cleveland-Cliffs Shows Optimism, Buys $100K In Stock

Disclosed in the latest SEC filing, a significant insider purchase on June 13, involves Ben Oren, Director at Cleveland-Cliffs CLF.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Oren purchased 6,700 shares of Cleveland-Cliffs, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $100,400.

In the Thursday's morning session, Cleveland-Cliffs's shares are currently trading at $15.1, experiencing a up of 0.2%.

All You Need to Know About Cleveland-Cliffs

Cleveland-Cliffs Inc is a flat-rolled steel producer and manufacturer of iron ore pellets in North America. It is organized into four operating segments based on differentiated products, Steelmaking, Tubular, Tooling and Stamping and European Operations, but operates through one reportable segment -Steelmaking. It is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. It serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Geographically, it operates in the United States, Canada and other countries. The majority of revenue is from the United States. It is a supplier of steel to the automotive industry in North America.

Cleveland-Cliffs: Financial Performance Dissected

Revenue Challenges: Cleveland-Cliffs's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.81%. This indicates a decrease in top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 5.48%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Cleveland-Cliffs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.14.

Debt Management: Cleveland-Cliffs's debt-to-equity ratio is below the industry average. With a ratio of 0.51, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 20.09, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.35 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 5.9, Cleveland-Cliffs presents an attractive value opportunity.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Understanding Crucial Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Cleveland-Cliffs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.