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Cleveland-Cliffs: Unraveling Recent Market Moves

MATT MONACO•UPDATED JUN. 18, 2025, 5:04 PM ET
Reviewed by Jack Kelloggand Fact-checked by Tim Sykes

Cleveland-Cliffs Inc. stocks have been trading down by -4.04 percent amid global steel demand concerns impacting market sentiment.

Market Overview

  • Shares of Cleveland-Cliffs (CLF) faced a downgrade from Jefferies from “Buy” to “Hold,” with a significant reduction in the price target from $10 to $6.
  • Citigroup has also cut its price target for CLF to $7.50, maintaining a neutral stance.
  • After Jefferies’ downgrade, CLF shares dipped 1.5%, reflecting the negative sentiment among investors.
  • Cleveland-Cliffs is currently engaging in talks with the U.S. and Mexico to remove steel tariffs, which could have mixed implications on its market reach.
  • An investigation is underway by the Schall Law Firm against CLF for suspected fraud and violations following their Q1 financial disclosure.

Candlestick Chart

Live Update At 17:03:59 EST: On Wednesday, June 18, 2025 Cleveland-Cliffs Inc. stock [NYSE: CLF] is trending down by -4.04%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Earnings Report and Financial Insights

As millionaire penny stock trader and teacher Tim Sykes says, “Preparation plus patience leads to big profits.” Traders need to understand the importance of not rushing into decisions without proper analysis and strategy. Successful trading isn’t just about reacting quickly but involves meticulous planning, market research, and waiting for the right moment to make a move. This disciplined approach not only minimizes risks but also maximizes potential gains, aligning perfectly with Sykes’ advice.

The latest earnings report by Cleveland-Cliffs paints a rather somber picture, with the company reporting disappointing figures for Q1 2025. They faced a larger-than-expected adjusted loss, and revenue declined by 11% compared to the previous year. The financial hit was visible in their stock movement as shares dropped significantly after these reports were made public, and the analyst actions further exacerbated investor concerns.

Looking at key financial ratios, the company’s profitability is concerning. Margins are either in the red or barely treading water, with an EBIT margin of -8% and a pretax profit margin of 4.8%. A deep dive into financial strength reveals a daunting scenario, with the quick ratio at a low 0.5 pointing towards potential liquidity strains.

A crucial action was the idling of six steel plants. While intended to control operational costs, this move might reverse anticipated cash flows, as Cleveland-Cliffs tries to navigate the tight economic straits. The enterprise value stands at just above $11B, with a corresponding price-to-sales ratio of a mere 0.2, indicating how the market perceives its current and near-future revenue powerhouse potential.

The financial statements highlight free cash flow at an alarming negative $503M. Operating revenues have touched $4.63B, yet the total expenses accumulated to $144M, underscoring an operational hiccup. A detailed examination of assets vs. liabilities shows a skew towards higher liabilities, raising pressing questions on how Cleveland-Cliffs plans to bridge the existing gap, especially given its substantial long-term debt of over $7.6B.

More Breaking News

Yet not all metrics flash red flags. The company’s gross margin holds steady at 100, helping ensure that some degree of buffer still exists for future strategic expansions or acquisitions. Balancing both opportunities and constraints, the steel titan might have an arduous path ahead if it doesn’t pivot to more sustainable avenues.

Impact of Recent News and Market Sentiments

In recent weeks, Cleveland-Cliffs has been swept up in market chatter surrounding US-Mexico negotiations on steel tariffs. Such talks are critical, as removal or reduction in tariffs can potentially widen the distribution channel for CLF products across borders. However, simultaneous reductions or eliminations could weaken domestic competitive advantages in manufacturing, warranting careful monitoring.

The whispers of Schall Law Firm’s investigation have also garnered attention, ever since CLF admitted to the financial tumble in Q1. Accusations of potential securities law violations have unfurled winds of caution among current and potential investors. Historical precedents suggest any tangible negative findings could further erode market trust, hammering the stock price.

Moreover, the downgrades from major financial institutions like Jefferies and Citigroup have painted a vivid landscape of concern over Cleveland-Cliffs’ current market stance. Downgrade actions often create ripples that can give rise to a self-fulfilling prophecy for stock behavior, emphasizing the momentum felt in the recent downturns. With a now frail analyst recommendation landscape, CLF faces monumental tasks in reshaping perceptions and rebuilding its claim across financial circles.

With steel plant closures, questions loom large on Cleveland-Cliffs’ long-term position and ability to bounce back. Amidst widespread sectoral impacts post-pandemic, CLF’s operational contraction might invite staunch labor contractions and thin out market interest. An elephant in the room remains on the firm’s strategic rapport — whether it will capitalize on emergent opportunities or face dwindling relevance in an evolving industry paradigm.

Conclusion: Navigating Uncertainty

The turbulent sways of Cleveland-Cliffs in the market seam evoke both nuanced analysis and robust interventions. Its recent endeavors, from plant shutdowns to legal scrutiny, could be solid foundations for future challenges or opportunities. Captured within are the gamut of choices management must deftly explore in the coming quarters, deciding on sustained operation or innovation could decide its fate.

As Cleveland-Cliffs endeavors through murky market waters, clarity on its decision-making, coupled with transparent trader communication, shall define its narrative in the months and years ensuing. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” Market participants and casual observers alike need to heed the signals and trends unfolding, lest they overlook the intricate dance of steel and strategy at play.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”