Arlene Yocum, a director at
Cleveland Cliffs (CLF), recently bought 2,000 shares. The buy increased her position by 2 percent, and came to a total cost of $40,050.
This buy comes a month after another director bought 25,000 shares, paying just over $506,000. Otherwise, company insiders have been inactive since last May, when a cluster of insiders were buyers. A few company directors were sellers last year.
Overall, Cleveland Cliffs insiders own 1.8 percent of shares.
The steel producer is flat over the past year as demand for base metals has been low. That’s also reflected in the company’s modest 1.3 percent revenue growth over the past year.
Even with the lackluster performance, Cleveland Cliffs trades at 12 times forward earnings. And shares trade at less than 0.5 times their price to sales. And the stock is in an uptrend.
Action to take: Investors may like shares at current prices. While the price has been flat over the past year, shares have been in an uptrend for the past few months. That trend looks likely to continue.
Currently, shares do not pay a dividend.
For traders, the current uptrend is likely to continue. The July $23 calls, last trading for about $1.30, could see mid-to-high double-digit returns in the months ahead on a further rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.