Chairman of Cleveland-Cliffs C. Goncalves Buys 1.2% More Shares

Cleveland-Cliffs Inc. (NYSE:CLF) shareholders (or potential shareholders) will be happy to see that the Chairman, C. Goncalves, recently bought a whopping US$1.0m worth of stock, at a price of US$16.76. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.2%.

Check out our latest analysis for Cleveland-Cliffs

The Last 12 Months Of Insider Transactions At Cleveland-Cliffs

Notably, that recent purchase by C. Goncalves is the biggest insider purchase of Cleveland-Cliffs shares that we've seen in the last year. That implies that an insider found the current price of US$17.28 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 112.00k shares for US$2.0m. On the other hand they divested 6.50k shares, for US$133k. Overall, Cleveland-Cliffs insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Cleveland-Cliffs insiders own 1.8% of the company, worth about US$147m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Cleveland-Cliffs Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cleveland-Cliffs. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Cleveland-Cliffs and we suggest you have a look.

But note: Cleveland-Cliffs may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.