Keep an eye on Cleveland-Cliffs (CLF). After plummeting from a high of about $23 to $14.26, the stock has become wildly oversold. It’s also over-extended on RSI, MACD, and Williams’ %R, and appears overdue for a bounce here. Helping, CEO Lourenco Goncalves paid $1.5 million on April 27 for 100,000 shares, an average price of $14.96 each. He now owns 2.5 million shares in a personal account and another three million shares in a trust, as noted by Barron’s.
Helping, Argus analyst David Coleman said, “CLF has a history of outperforming the market and the industry, and is led by an experienced management team. However, Cleveland-Cliffs, along with its peers, has seen its share price drop substantially amid falling metals prices and weaker global economic conditions. However, we expect steel demand to pick up as the automotive sector recovers… We think that CLF shares are attractively valued at current prices near $15,” as noted by Tip Ranks. The analyst also has a buy rating on CLF with a $20 price target.