Potential Cleveland-Cliffs Inc. (NYSE:CLF) shareholders may wish to note that the Executive VP & CFO, Keith Koci, recently bought US$252k worth of stock, paying US$8.39 for each share. We reckon that’s a good sign, especially since the purchase boosted their holding by 169.5%.
Cleveland-Cliffs Insider Transactions Over The Last Year
Notably, that recent purchase by Keith Koci 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$8.45 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. 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 81700 shares for US$760k. On the other hand they divested 12700 shares, for US$128k. In total, Cleveland-Cliffs insiders bought more than they sold over the last year. Their average price was about US$9.31. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Cleveland-Cliffs insiders own 1.6% of the company, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Cleveland-Cliffs Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Cleveland-Cliffs shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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