Cliffs Natural Resources Inc. (CLF) Shares Slip, Investors Watching Closely, Here is Why

Cliffs Natural Resources Inc. (NYSE: CLF) shares rose on Monday Dec 5 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.

The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.

Shares of Cliffs Natural Resources Inc. (NYSE: CLF) were downgraded by analysts at Vetr Inc. in a note to their investors today. With a rating of Hold on the stock, the company has a 52-week high of $10.14. As a means of comparison, a number of other analysts have commented on the stock in recent days, and Cliffs Natural Resources Inc. has secured a consensus one-year price target of $6.38, a decrease compared to the opening price of $9.89. Considerable and integral changes in the company’s operations, future outlook or industry can cause downgrades as the analysts feel that the future prospects for the security have weakened from the initial recommendation.

Cliffs Natural Resources Inc. (NYSE: CLF) shares last traded at $9.98, which is a jump of $0.42 or 4.34% over the previous closing price. Opening at $9.89, they fluctuated from $9.88 and $10.11 throughout the day.

Cliffs Natural Resources Inc. (NYSE: CLF) now has a market cap of 2.30B.

Cliffs Natural Resources Inc. (NYSE: CLF) Average Daily Trading Volume

The stock’s average daily volume is 11,881,700 shares out of a total float 199,270,000 and some 3,786,789 shares traded hands yesterday, below the average. Look for trading volume to pick up in the coming days as investors often use swings in trading volume to identify heavy volume accumulation or circulation by institutional investors.

However, just a day of heavy buy side trading is not enough to determine a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have teams of analysts researching thousands of stocks, so it is good validation to see them buying a stock you’re considering.

Cliffs Natural Resources Inc. (NYSE: CLF) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders can make smarter trades when they track the activity of professional investors.

With that in mind, Cliffs Natural Resources Inc. (NYSE: CLF) now has a 50-day MA of $6.99 and 200-day MA of $6.10. It has traded in a 52-week range between $1.20 – 10.140 and today’s last price is 1.63%% lower than the 52 week high of $10.14.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have grown their earnings at least 25% or more for 3 consecutive years.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *