Cleveland-Cliffs (NYSE:CLF) to Buyback $200.00 million in Outstanding Stock
Dec 21st, 2018
Cleveland-Cliffs logoCleveland-Cliffs (NYSE:CLF) announced that its board has authorized a stock repurchase plan, which authorizes the company to repurchase $200.00 million in outstanding shares on Monday, November 26th. This repurchase authorization authorizes the mining company to purchase up to 7.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.
Shares of NYSE CLF traded down $0.14 during mid-day trading on Friday, hitting $7.68. The company had a trading volume of 9,846,003 shares, compared to its average volume of 11,285,349. The stock has a market capitalization of $2.37 billion, a price-to-earnings ratio of 15.36 and a beta of 1.62. Cleveland-Cliffs has a one year low of $6.30 and a one year high of $13.10.
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Cleveland-Cliffs (NYSE:CLF) last posted its quarterly earnings results on Friday, October 19th. The mining company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.02). Cleveland-Cliffs had a negative return on equity of 146.72% and a net margin of 36.43%. The business had revenue of $742.00 million for the quarter, compared to the consensus estimate of $736.06 million. During the same quarter in the previous year, the business posted $0.36 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. On average, sell-side analysts anticipate that Cleveland-Cliffs will post 1.95 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 15th. Investors of record on Friday, January 4th will be issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 2.60%. The ex-dividend date is Thursday, January 3rd.
Several equities research analysts have recently weighed in on the company. Zacks Investment Research upgraded Cleveland-Cliffs from a “hold” rating to a “buy” rating and set a $14.00 price objective on the stock in a research note on Tuesday, October 9th. Credit Suisse Group reaffirmed a “neutral” rating and set a $13.00 price objective on shares of Cleveland-Cliffs in a report on Monday, October 15th. Morgan Stanley set a $11.00 price objective on Cleveland-Cliffs and gave the stock a “hold” rating in a report on Tuesday, October 23rd. Citigroup upped their price objective on Cleveland-Cliffs from $12.00 to $15.00 and gave the stock a “buy” rating in a report on Friday, October 5th. Finally, B. Riley set a $15.00 price target on Cleveland-Cliffs and gave the company a “buy” rating in a research note on Wednesday, September 26th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have assigned a buy rating to the company. Cleveland-Cliffs currently has a consensus rating of “Hold” and a consensus target price of $11.27.
