A little over a year ago, I analyzed Cleveland-Cliffs ( CLF ), and I had some thoughts about the situation at the time and the future outlook. At that time, I gave the companyI am a full-time investor focusing on high-quality and growth companies. One of my other major areas is stocks with high starting dividends and low valuations. I try to have a portfolio balance between dividend-paying stocks and stocks with high growth but lower dividend payouts. Overall, I have 8 years of experience of investing in st ...

Core Insights - Voya Investment Management's "Voya MI Dynamic Small Cap Fund" experienced underperformance in Q3 2025, primarily due to stock selection issues despite a strong recovery in equity markets [1] - The fund highlighted Cleveland-Cliffs Inc. (NYSE:CLF) as a significant contributor to performance, with a one-month return of 21.27% and a market capitalization of $7.047 billion [2][3] Fund Performance - The equity markets rebounded strongly in Q3 2025, recovering from earlier volatility caused by tariffs, with growth stocks outperforming value stocks [1] - The fund's performance was negatively impacted on a NAV basis, indicating challenges in stock selection during the quarter [1] Cleveland-Cliffs Inc. (NYSE:CLF) Analysis - Cleveland-Cliffs Inc. was noted for its strong valuation metrics, including book to price and operating cash flow to price, which contributed positively to the fund's performance [3] - The stock's price increase was attributed to efficiency improvements in its auto platform division [3] - Cleveland-Cliffs Inc. was held by 52 hedge fund portfolios at the end of Q3 2025, an increase from 42 in the previous quarter [4]

Group 1 - BofA analyst Lawson Winder has lowered the price target for Cleveland-Cliffs (CLF) to $12.50 from $14 while maintaining a Neutral rating on the shares [1] - The firm is updating its price forecasts for North American Metals & Mining stocks under its coverage [1] - The macroeconomic environment is viewed as challenging due to slowing commodity demand from China, but there may be a rebound in demand in the U.S. and Europe [1]

Group 1 - Cleveland-Cliffs (CLF) stock received a positive adjustment to its Relative Strength (RS) Rating, increasing from 78 to 82, indicating improved technical performance compared to other stocks [1] - Nucor's RS Rating climbed to 74, reflecting rising price performance and an upgrade in its relative strength [3] - Steel Dynamics also saw its RS Rating jump to 82, showcasing improved relative price performance [3] Group 2 - The stock market experienced fluctuations, with the Dow Jones Industrial Average jumping as Nvidia considers market entry, while Apple remains among stocks near buy points [3] - Cleveland-Cliffs stock surged due to transformative deals influenced by Trump tariffs, highlighting the impact of external factors on stock performance [3]

Core Viewpoint - Cleveland-Cliffs has experienced a decline in share price of approximately 16.4% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Financial Performance - The third-quarter 2025 adjusted loss was 45 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 48 cents per share, compared to an adjusted loss of 33 cents per share in the same quarter last year [2] - Revenues increased by 3.6% year over year to $4,734 million, but fell short of the Zacks Consensus Estimate of $4,886.6 million [2] Operational Highlights - Steelmaking revenues were approximately $4.6 billion for the third quarter, reflecting a year-over-year increase of around 3% [3] - The average net selling price per net ton of steel products was $1,032, down about 1.2% year over year, but exceeded the estimate of $996 [3] - External sales volumes for steel products were approximately 4.03 million net tons, up around 5% year over year, but missed the estimate of 4.3 million net tons [3] Financial Position - As of the end of the third quarter, cash and cash equivalents stood at $66 million, an increase of approximately 8.2% from the previous quarter [4] - Long-term debt rose by 4% sequentially to $8,039 million, with total liquidity at $3.1 billion [4] Outlook - The company has revised its full-year 2025 guidance, lowering capital expenditures to approximately $525 million from $600 million, and reducing selling, general, and administrative expenses to around $550 million from $575 million [5] - Cleveland-Cliffs aims for steel unit cost reductions of about $50 per net ton compared to 2024, while maintaining depreciation, depletion, and amortization expenses at approximately $1.2 billion [6] Estimate Revisions - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 25.88% [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [10] VGM Scores - Cleveland-Cliffs has a poor Growth Score of F, a Momentum Score of F, and a Value Score of F, placing it in the bottom 20% quintile for value investors, resulting in an aggregate VGM Score of F [9]

Core Insights - Cleveland-Cliffs Inc (NYSE:CLF) has seen a 2.1% increase in stock price, trading at $10.96, following a bounce off the $10 level, which coincides with the 126-day moving average that has historically captured several pullbacks [1] - The stock is currently up 16.2% for 2025 but remains significantly below its two-year high of $16.70 reached on October 20 [1] Short Interest - Short interest in Cleveland-Cliffs has decreased by 14% over the last two reporting periods, representing 10.9% of the stock's total available float [3] - At the average trading pace, it would take short sellers more than two days to cover these positions [3] Options Market - Options for Cleveland-Cliffs are currently considered affordable, with a Schaeffer's Volatility Index (SVI) of 67%, placing it in the 20th percentile of annual readings [4] - The company tends to outperform options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) of 74 out of 100 [4]

Core Viewpoint - Cleveland-Cliffs (CLF) has seen a 25% decline in its share price over the last month, despite previous positive trade-policy news and expectations for a revival in automotive-steel demand [2][5]. Company-Specific Challenges - The decline in CLF's stock is attributed to a combination of company-specific challenges and broader economic headwinds, indicating a reassessment of risks rather than just opportunities [5]. - In Q3 2025, CLF reported revenues of approximately US$4.7 billion, down from US$4.9 billion in Q2, with an adjusted net loss of US$223 million, or US$0.45 per diluted share [9]. - The average net selling price per ton in the steel-making division was US$1,032 in Q3, a slight decline from US$1,045 a year prior, despite an increase in shipment volumes to 4.0 million net tons [9]. External Demand & Macroeconomic Risks - The steel industry is facing cyclical demand challenges across construction, manufacturing, and automotive sectors, along with competition from imports [9]. - Investor confidence is wavering due to the discrepancy between CLF's strategic vision and execution, as the company continues to operate at a loss and provides cautious guidance [9]. Strategic Initiatives - CLF is assessing the potential for rare-earth minerals at mining locations in Michigan and Minnesota and has a memorandum of understanding with a significant global steel producer, which could enhance growth if finalized [10]. - Approximately 30% of the steel-making revenues in Q3 came from the automotive sector, highlighting the importance of automotive recovery for CLF's performance [10]. Financial Stability & Liquidity Management - CLF concluded Q3 2025 with around US$3.1 billion in consolidated liquidity, which provides some safety amid ongoing losses and the cyclical nature of steel production [7][10]. - The company aims for cost reduction targets of approximately US$50 per ton compared to 2024, which are critical indicators to monitor for financial stability [10].

Core Insights - Duquesne Family Office, led by Stanley Druckenmiller, filed its third-quarter 13F, showcasing a dynamic and actively managed portfolio that emphasizes agile asset allocation [1][2] - The filing reflects Druckenmiller's ongoing pursuit of growth and value, with a notable increase in new positions while exiting others, consistent with the firm's nimble investment strategy [2] Holdings Summary - New significant positions include Amazon.com Inc. (437,070 shares), Cleveland-Cliffs Inc. (2,715,035 shares), Alphabet, Inc. (102,200 shares), Meta Platforms Inc. (76,100 shares), and StubHub Holdings, Inc. (4,259,516 shares) [5] - The firm closed several positions, including Microsoft Corp. (sold 200,930 shares), Eli Lilly & Co (sold 100,675 shares), Viking Therapeutics Inc. (sold 549,295 shares), Applovin Corp. (sold 76,100 shares), and Joby Aviation Inc. (sold 31,489 shares) [5] - As of September 30, 2025, the firm's top five holdings were Natera Inc. (13%), Insmed Inc. (8.6%), Teva Pharmaceutical Industries Ltd. (8.3%), Taiwan Semiconductor Manufacturing Company Ltd. (5.3%), and Woodward Inc. (3.9%) [5] Investment Strategy - Duquesne's aggressive repositioning in the third quarter reinforces its reputation for nimble action and readiness to capture growth opportunities, particularly in the healthcare and technology sectors [2]

Core Insights - Cleveland-Cliffs Inc. (NYSE:CLF) experienced a significant stock price increase of 8.14%, closing at $11.03, following the announcement of a new board member [1][3]. Group 1: Leadership Changes - Edilson Camara has been appointed to the Board of Directors of Cleveland-Cliffs, effective immediately, and will serve on the Compensation and Organization Committee [2]. - Camara is the CEO Emeritus of Egon Zehnder, a leading global executive search and leadership advisory firm, and brings extensive experience in senior leadership and talent frameworks [3][4]. - The Chairman, President, and CEO of Cleveland-Cliffs, Lourenco Goncalves, emphasized that Camara's global industrial perspective aligns well with the company's strategic priorities [3].

Core Viewpoint - Cleveland-Cliffs Inc. is focusing on optimizing operations in response to the evolving domestic steel market, with the potential for improved economics due to the continuation of 50% tariffs on imported steel and steel products [1] Group 1: Company Operations - Cleveland-Cliffs is adjusting its operations to align with the new dynamics of the domestic steel market [1] - The company anticipates that the ongoing tariffs on imported steel will enhance the profitability of its steelmaking business in the upcoming quarters [1] Group 2: Market Context - The steel industry is currently benefiting from protective tariffs, which may lead to a more favorable economic environment for domestic producers like Cleveland-Cliffs [1]