Lourenco Goncalves, President and CEO at Cleveland-Cliffs (CLF), recently bought 100,000 shares. The buy increased his holdings by 2 percent, and came to a total cost of $1,496,350.
He was joined by an EVP who bought 7,300 shares. The buy increased his holdings by 2 percent, and came to a total price of $108,548. And a director bought 1,500 shares a day later, for $22,703. Insiders have been more active as buyers than sellers over the past year.
Overall, insiders own 1.6 percent of shares.
The steelmaker is down about 40 percent over the past year, as fears of a slowing economy have hit the commodities market. Even with the drop, shares trade for just 9 times forward earnings, and the company just beat on its earnings and revenue expectations.
Plus, the company just reached a four-year labor agreement, which can keep its facilities open.
Action to take: Shares are trending down, but long-term investors may want to start building a stake after a drop under $15. That will be near the low end of the stock’s 52-week range. At present, Cleveland-Cliffs does not pay a dividend.
For traders, shares will likely set up for a rebound in the coming sessions. The July $18 calls, last going for about $0.53, offer mid-double-digit returns or better on such a move higher in the coming weeks.
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.