Cleveland-Cliffs (CLF) | News Based Sentiment Analysis

• On October 2, 2025, Cleveland-Cliffs (NYSE: CLF) saw its stock price increase by 2.09%, closing at $12.70, a rise from $12.44 the previous day. Over the past two weeks, the stock has climbed 11.11%, and in the last month, it’s up an impressive 22%, bringing the market capitalization to $6.28 billion. This positive momentum suggests growing investor confidence in the company.
• Despite the recent stock gains, Simply Wall St analysis indicates a mixed valuation picture as of October 2-3, 2025. While deemed 'OVERVALUED' with a fair value of $11.31, the company appears 'undervalued' based on a price-to-sales ratio of 0.3x, significantly lower than the industry average of 3.1x. This discrepancy highlights differing perspectives on the company’s worth.
• Institutional activity revealed a notable shift on October 3, 2025, with Wealth Enhancement Advisory Services LLC reducing its CLF holdings by 46.6%, selling 87,958 shares. However, other institutions like Byrne Asset Management LLC and NBC Securities Inc. increased their positions, and institutional investors collectively own 67.68% of the company, representing 437,029,915 shares as of October 1, 2025.
• Cleveland-Cliffs is proactively implementing cost-cutting measures announced on October 2, 2025, including idling facilities in Riverdale, Conshohocken, and Steelton, projected to save $300 million annually. Restarting the Cleveland #6 blast furnace and idling the Dearborn hot end will add another $125 million in savings, and a canceled transformer project will save $50 million. These actions, combined with projected $120 million synergies from the Stelco acquisition, demonstrate a commitment to improving profitability.
• Looking back to earlier in the month, Q2 2025 financial results showed an EPS of ($0.50), beating estimates of ($0.68), and revenue of $4.93 billion, surpassing estimates of $4.90 billion, representing a 7.5% year-over-year increase. However, Q1 2025 showed an adjusted EBITDA loss of $174 million and Q2 2025 ROE was -17.97%.
• Analyst sentiment, as of October 2-3, 2025, leans towards a 'Hold' rating with an average 1-year price target of $11.94 (ranging from $10.00 to $14.00), implying a potential decline. Short-term targets average $11.21, a 9.89% decrease from the October 2nd closing price. Technical analysis, however, shows a 'Buy' signal based on the 200-day moving average of $9.40.

The Investment Story: October brought a mixed bag for Cleveland-Cliffs, with positive stock performance and cost-cutting initiatives offset by mixed valuation signals and cautious analyst sentiment. The company is actively working to improve profitability, but faces headwinds in market perception and potential price declines.

What It Means for Investors: The stock's recent gains may not be sustainable given the 'Hold' ratings and potential for a price decline. While cost-cutting measures are positive, investors should carefully consider the mixed valuation signals and monitor the impact of institutional trading activity.

Looking Ahead: Investors should closely watch the Q3 2025 earnings release scheduled before the U.S. market opens on Monday, October 20, 2025, for further insights into the company’s performance and future outlook. Monitoring the EES Coke Battery legal proceedings, with findings of fact due October 9, 2025, remains crucial.

The Bottom Line: October’s developments suggest Cleveland-Cliffs is navigating a complex landscape. While the company is taking steps to improve its financial position, investors should proceed with caution, carefully weighing the potential risks and rewards before making investment decisions.