Keith Koci, an EVP at Cleveland-Cliffs (CLF), recently picked up 10,000 shares. The buy increased his stake by nearly 5 percent, and came to a total purchase price of just over $218,000.
This marks the first insider buy at the company since May. Overall, company insiders have been regular buyers of shares over the past three years, with some moderate sales by company directors earlier this year and the sale of a stake from a major company back in February.
Overall, company insiders own 8.9 percent of company shares.
The steelmaker has benefitted from a rally in the commodity space this year, with shares up 116 percent. Revenue is up 265 percent, and earnings are growing, but the company isn’t profitable yet.
Action to take: While steel prices may cool somewhat, the company is on an upward growth trajectory and could potentially move even higher from here. Investors may want to own shares here. While the company isn’t paying a dividend right now, the daily volatility in commodity stocks makes it more likely to keep its value compared to a short-term options trade.
For traders, a long-dated options play like the January 2023 $30 calls, last going for about $2.90, make sense from here. The trade could deliver triple-digit returns in the next 14 months, without losing too much value to daily swings in shares.
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 of the companies mentioned in this article.