Celso Goncalves, CFO at
Cleveland-Cliffs (CLF), recently picked up 4,000 shares. The buy increased his holdings by nearly 3 percent, and came to a total price just over $105,000.
The buy comes three days after another company insider, an EVP, picked up 4,500 shares, paying just over $122,000. Going back further, insiders have been regular buyers, with a few insider sales only as recently as last June.
Overall, company insiders own 1.3 percent of shares.
The steel producer has seen shares soar by 40 percent over the past year. Revenue is up 137 percent over the past year, and earnings are up nearly 1,300 percent. As a result, shares are still inexpensive at 4 times forward earnings.
Steel is in high demand, and iron ore prices have been increasing, which have helped continue to support prices for steel.
Action to take: with commodity prices likely to continue higher, the company should continue to see its share price rise. The stock doesn’t currently pay a dividend, but last did in 2020, so it could reinstate one if earnings continue to perform so strongly.
For traders, the July $28 options go for about $2.00. They have plenty of time for a further rally in shares to play out, and could deliver mid-to-high double-digit gains 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.