Insider Activity: Cleveland-Cliffs (CLF)

CFO and director buy shares.

On Thursday, August 22nd, Keith Koci, CFO of Cleveland-Cliffs Inc. (CLF)picked up 12,500 shares of the company, paying just over $101,000 to do so. This buy increased his total stake in shares by 17 percent.

He was joined by director John Baldwin, who bought 7,000 shares, a $58,000 buy. That increased the director’s stake by 6.5 percent. Insiders have bought earlier in the month as well, and have been net buyers with no sales since May.

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  • Insiders have often paid prices as much as 17 percent higher than where shares currently trade.

    Cleveland-Cliffs is an iron ore mining company internationally, with large holdings in Michigan and Minnesota. It primarily serves integrated steel companies and producers.

    Action to take: With shares down 14 percent in the past year and with a forward PE ratio of just 5, this is a great price to start looking at any commodity company. Revenue growth has been positive, although the company’s earnings have dropped slightly in the past year. The company has a bit high of a debt load, however in a strong steel market shares could move far higher.

    Investors should look at shares at or under $8.50. And speculators may want to buy a January 2020 $8 call option, which can profit from any upside in shares over the next few months for just $1.10, or $110 per contract, compared to the $800 cost to buy 100 shares.