CLF Should I Buy
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Cleveland-Cliffs Inc (CLF) is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is currently oversold, but the lack of positive catalysts, deteriorating financial performance, insider selling, and bearish technical indicators suggest that it is better to avoid this stock at the moment.
The technical indicators are bearish. The MACD histogram is negative and contracting, the RSI indicates the stock is oversold at 15.28, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support is at 8.036, and resistance is at 10.03. The stock is trading near support but lacks momentum for a reversal.
NULL identified. There are no recent news events or significant positive developments to act as catalysts for the stock.
Insider selling has increased by 4686.82% over the last month.
Analysts have lowered price targets and ratings, citing weak financial performance and subdued demand.
The CEO sold $37.3M worth of stock after a disappointing Q4 report.
Financial performance has significantly deteriorated, with revenue, net income, EPS, and gross margin all declining YoY.
In Q4 2025, Cleveland-Cliffs reported a revenue decline of -0.28% YoY to $4.31B. Net income dropped by -45.64% YoY to -$243M, EPS fell by -52.17% YoY to -0.44, and gross margin decreased by -24.25% YoY to -4.78. These figures indicate a significant deterioration in the company's financial health.
Analysts have a mixed to bearish outlook on CLF. Recent downgrades include Seaport Research and KeyBanc, while BofA and GLJ Research lowered their price targets. Morgan Stanley's upgrade to Overweight is an outlier, but it is based on long-term steel price trends rather than immediate performance. The consensus reflects concerns over the company's stretched balance sheet, lackluster demand, and weak EBITDA guidance.
