Turiya Advisors Acquires $96.28M Stake in Cleveland-Cliffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CLF?
Source: Fool
- New Investment Position: Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs during Q4 by acquiring 7.25 million shares valued at approximately $96.28 million, representing 14.75% of its reportable assets, indicating a strategic focus on the steel sector.
- Financial Performance Overview: Cleveland-Cliffs reported fourth-quarter revenue of $4.3 billion, flat year-over-year, alongside a net loss of $235 million, with full-year revenue declining from $19.2 billion to $18.6 billion, highlighting the challenges faced amid market fluctuations.
- Market Position Analysis: As a leading North American steel producer with a vertically integrated business model, Cleveland-Cliffs serves key customers in the automotive and infrastructure sectors, underscoring its significant role in economically sensitive industries.
- Investor Focus: Despite quarterly losses, Turiya Advisors' substantial investment suggests confidence in a steel market recovery, particularly in light of improving trade dynamics and automotive demand, which could lead to sustained margin recovery.
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLF is 12.78 USD with a low forecast of 5.75 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 12.480
Low
5.75
Averages
12.78
High
17.00
Current: 12.480
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, rail, slab and cast ingot. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Turiya Advisors Acquires $96.28M Stake in Cleveland-Cliffs
- New Investment Position: Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs during Q4 by acquiring 7.25 million shares valued at approximately $96.28 million, representing 14.75% of its reportable assets, indicating a strategic focus on the steel sector.
- Financial Performance Overview: Cleveland-Cliffs reported fourth-quarter revenue of $4.3 billion, flat year-over-year, alongside a net loss of $235 million, with full-year revenue declining from $19.2 billion to $18.6 billion, highlighting the challenges faced amid market fluctuations.
- Market Position Analysis: As a leading North American steel producer with a vertically integrated business model, Cleveland-Cliffs serves key customers in the automotive and infrastructure sectors, underscoring its significant role in economically sensitive industries.
- Investor Focus: Despite quarterly losses, Turiya Advisors' substantial investment suggests confidence in a steel market recovery, particularly in light of improving trade dynamics and automotive demand, which could lead to sustained margin recovery.
See More
Wall Street Rattled by Cisco's Cautious Outlook
- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
Cleveland-Cliffs Faces Challenges Amid Tariffs
- Tariff Impact: Cleveland-Cliffs' stock is negatively affected by tariffs, as the company has performed reasonably well under these conditions but still lags behind competitor Nucor, indicating its market disadvantage.
- Economic Activity Demand: Cramer highlighted that Cleveland-Cliffs needs more economic activity to improve its performance, suggesting that the current market environment continues to pose challenges for steel manufacturers, impacting their future growth potential.
- Competitor Performance: Compared to Nucor, Cleveland-Cliffs is underperforming, with Cramer explicitly stating he does not recommend the stock, emphasizing Nucor's operational superiority and suggesting investors should consider more promising alternatives.
- Investment Outlook: While Cleveland-Cliffs is seen as having investment potential, market analysts generally believe that certain AI stocks offer greater upside potential and carry less downside risk, reflecting a shift in market focus towards different sectors.
See More
Cleveland-Cliffs Declines Following Earnings Report—Is the Drop Excessive?
Earnings Report Overview: Cleveland-Cliffs (CLF) reported mixed earnings following the Super Bowl, with an initial bearish market reaction. The company's earnings loss was offset by better-than-expected revenue, despite a 6% miss in revenue forecasts.
Stock Performance and Future Outlook: The stock has seen a significant increase of over 47% in the past year, but investors are cautious about the company's future guidance, which they believe needs to be stronger to maintain confidence.
Market Conditions and Expectations: Cleveland-Cliffs anticipates shipping approximately 16.8 million tons of steel in 2026, a 3% increase from the previous year, supported by improved manufacturing conditions and lower coal prices.
Strategic Partnerships and Investor Sentiment: The company is exploring a strategic partnership with Korean steelmaker POSCO, which could involve equity investment. However, uncertainty remains regarding the completion of this agreement and its impact on investor confidence.
See More
Cleveland-Cliffs Stock Plummets 16% Amid Disappointing Earnings
- Demand Gap Impact: Cleveland-Cliffs faced significant steel imports last year that adversely affected its domestic market, creating a demand gap that negatively impacted steel shipments and asset utilization, ultimately leading to disappointing performance metrics.
- Disappointing Earnings Report: The company projected EBITDA of only $140 million in its latest earnings report, significantly below Bloomberg's consensus of $321 million, resulting in a stock price drop of over 16% on Monday, marking its worst session in over three months.
- Analyst Rating Dynamics: Despite the stock's decline, analysts maintain an average ‘Buy’ rating on Cleveland-Cliffs, with three analysts rating it ‘Buy’ or higher, indicating confidence in the company's future potential amidst current challenges.
- Retail Sentiment Shift: Retail investor sentiment on Cleveland-Cliffs shifted from ‘bearish’ to ‘extremely bullish’, with a 15,900% surge in message volume on Stocktwits over the past 24 hours, reflecting a positive response to the current dip in stock price.
See More
Cleveland-Cliffs Shares Plunge 16.5% After Q4 Revenue Miss
- Earnings Miss: Cleveland-Cliffs reported Q4 revenues of $4.3 billion, flat year-over-year but significantly below Wall Street's consensus of $4.6 billion, resulting in a full-year net loss exceeding $1.4 billion and a 3% decline in sales to $18.6 billion, indicating mounting pressure in the competitive landscape.
- Automotive Sector Impact: The company noted that its FY 2025 performance was adversely affected by persistently weak production levels in the automotive sector, which accounted for 28% of its quarterly steelmaking revenue, further exacerbating the sales decline and reflecting overall industry demand weakness.
- Cost Increase Expectations: The CEO indicated that the upcoming quarter would see higher costs due to a recent spike in utility expenses and changes in product mix, although normalization is expected by Q2, alongside anticipated improvements in steel pricing and shipment volumes.
- Strategic Priority: Cleveland-Cliffs has extended its timeline for reaching an agreement with Korea's Posco for asset sales to H1 2025, with the CEO emphasizing that this deal remains the number one strategic priority for both companies, reflecting the seriousness and potential scale of the opportunity.
See More
Turiya Advisors Acquires $96.28M Stake in Cleveland-Cliffs
- New Investment Position: Turiya Advisors Asia Ltd initiated a new position in Cleveland-Cliffs during Q4 by acquiring 7.25 million shares valued at approximately $96.28 million, representing 14.75% of its reportable assets, indicating a strategic focus on the steel sector.
- Financial Performance Overview: Cleveland-Cliffs reported fourth-quarter revenue of $4.3 billion, flat year-over-year, alongside a net loss of $235 million, with full-year revenue declining from $19.2 billion to $18.6 billion, highlighting the challenges faced amid market fluctuations.
- Market Position Analysis: As a leading North American steel producer with a vertically integrated business model, Cleveland-Cliffs serves key customers in the automotive and infrastructure sectors, underscoring its significant role in economically sensitive industries.
- Investor Focus: Despite quarterly losses, Turiya Advisors' substantial investment suggests confidence in a steel market recovery, particularly in light of improving trade dynamics and automotive demand, which could lead to sustained margin recovery.
See More
Wall Street Rattled by Cisco's Cautious Outlook
- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
Cleveland-Cliffs Faces Challenges Amid Tariffs
- Tariff Impact: Cleveland-Cliffs' stock is negatively affected by tariffs, as the company has performed reasonably well under these conditions but still lags behind competitor Nucor, indicating its market disadvantage.
- Economic Activity Demand: Cramer highlighted that Cleveland-Cliffs needs more economic activity to improve its performance, suggesting that the current market environment continues to pose challenges for steel manufacturers, impacting their future growth potential.
- Competitor Performance: Compared to Nucor, Cleveland-Cliffs is underperforming, with Cramer explicitly stating he does not recommend the stock, emphasizing Nucor's operational superiority and suggesting investors should consider more promising alternatives.
- Investment Outlook: While Cleveland-Cliffs is seen as having investment potential, market analysts generally believe that certain AI stocks offer greater upside potential and carry less downside risk, reflecting a shift in market focus towards different sectors.
See More
Cleveland-Cliffs Declines Following Earnings Report—Is the Drop Excessive?
Earnings Report Overview: Cleveland-Cliffs (CLF) reported mixed earnings following the Super Bowl, with an initial bearish market reaction. The company's earnings loss was offset by better-than-expected revenue, despite a 6% miss in revenue forecasts.
Stock Performance and Future Outlook: The stock has seen a significant increase of over 47% in the past year, but investors are cautious about the company's future guidance, which they believe needs to be stronger to maintain confidence.
Market Conditions and Expectations: Cleveland-Cliffs anticipates shipping approximately 16.8 million tons of steel in 2026, a 3% increase from the previous year, supported by improved manufacturing conditions and lower coal prices.
Strategic Partnerships and Investor Sentiment: The company is exploring a strategic partnership with Korean steelmaker POSCO, which could involve equity investment. However, uncertainty remains regarding the completion of this agreement and its impact on investor confidence.
See More
Cleveland-Cliffs Stock Plummets 16% Amid Disappointing Earnings
- Demand Gap Impact: Cleveland-Cliffs faced significant steel imports last year that adversely affected its domestic market, creating a demand gap that negatively impacted steel shipments and asset utilization, ultimately leading to disappointing performance metrics.
- Disappointing Earnings Report: The company projected EBITDA of only $140 million in its latest earnings report, significantly below Bloomberg's consensus of $321 million, resulting in a stock price drop of over 16% on Monday, marking its worst session in over three months.
- Analyst Rating Dynamics: Despite the stock's decline, analysts maintain an average ‘Buy’ rating on Cleveland-Cliffs, with three analysts rating it ‘Buy’ or higher, indicating confidence in the company's future potential amidst current challenges.
- Retail Sentiment Shift: Retail investor sentiment on Cleveland-Cliffs shifted from ‘bearish’ to ‘extremely bullish’, with a 15,900% surge in message volume on Stocktwits over the past 24 hours, reflecting a positive response to the current dip in stock price.
See More
Cleveland-Cliffs Shares Plunge 16.5% After Q4 Revenue Miss
- Earnings Miss: Cleveland-Cliffs reported Q4 revenues of $4.3 billion, flat year-over-year but significantly below Wall Street's consensus of $4.6 billion, resulting in a full-year net loss exceeding $1.4 billion and a 3% decline in sales to $18.6 billion, indicating mounting pressure in the competitive landscape.
- Automotive Sector Impact: The company noted that its FY 2025 performance was adversely affected by persistently weak production levels in the automotive sector, which accounted for 28% of its quarterly steelmaking revenue, further exacerbating the sales decline and reflecting overall industry demand weakness.
- Cost Increase Expectations: The CEO indicated that the upcoming quarter would see higher costs due to a recent spike in utility expenses and changes in product mix, although normalization is expected by Q2, alongside anticipated improvements in steel pricing and shipment volumes.
- Strategic Priority: Cleveland-Cliffs has extended its timeline for reaching an agreement with Korea's Posco for asset sales to H1 2025, with the CEO emphasizing that this deal remains the number one strategic priority for both companies, reflecting the seriousness and potential scale of the opportunity.
See More
