Cleveland-Cliffs (CLF) Stock Is Sliding Thursday: What's Going On?
Shares of Cleveland-Cliffs Inc (NYSE:CLF) are trading lower Thursday after the company announced the pricing of a public offering of 75 million common shares. Here’s what investors need to know.
- CLF shares are retreating from recent levels. See the trading setup here.
What To Know: The steelmaker expects to raise gross proceeds of approximately $964 million, implying a price of about $12.85 per share. CLF plans to use the funds to repay borrowings under its credit facility. This action increases the number of shares outstanding, a dilutive move that is putting pressure on the stock price.
The offering follows a recent surge in investor interest after CLF revealed it is exploring opportunities in the rare earth minerals sector. On its third-quarter call, CEO Lourenco Goncalves highlighted the company is assessing ore and tailings sites in Minnesota and Michigan for rare earth potential.
This long-term strategic initiative aims to create a domestic supply chain for critical materials, but Thursday’s focus remains on the near-term impact of the stock dilution.
Benzinga Edge Rankings: Benzinga Edge Rankings highlight the stock’s strong Momentum score of 81.66, despite a low Growth score of 10.15.
CLF Price Action: Cleveland-Cliffs shares were down 12.82% at $12.28 at the time of publication on Thursday, according to Benzinga Pro data.
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How To Buy CLF Stock
By now you're likely curious about how to participate in the market for Cleveland-Cliffs – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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