What's Going On With Cleveland-Cliffs Stock?

Cleveland-Cliffs, Inc. CLF shares are trading higher Monday after the company issued a statement regarding the proposed acquisition of U.S. Steel by Nippon Steel.

What To Know:

Lourenco Goncalves, CEO of Cleveland-Cliffs, said, "We identified U.S. Steel as an extremely undervalued company with significant synergy potential when combined with Cleveland-Cliffs, creating a union-friendly American champion among the top-10 steelmakers in the world. Even though U.S. Steel's Board of Directors and CEO chose to go a different direction with a foreign buyer, their move validates our view that our sector remains undervalued by the broader market, and that a multiple re-rating for Cleveland-Cliffs is long overdue."

He continued, "As we have been guiding, we have already reached our net debt target of $3.0 billion this quarter, with no borrowings on our ABL as of today. Given that our CLF shares are still significantly undervalued, we will now re-focus our capital allocation priorities towards more aggressive share buybacks under our existing share repurchase authorization."

Cleveland-Cliffs shares are moving on heavy volume following the company's statement and have gained nearly 19% over the past month.

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CLF Price Action: According to Benzinga Pro, Cleveland-Cliffs shares are up by 8.8% at $20.34 at the time of publication.

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