On July 31, 2023, Vanguard Group Inc (Trades, Portfolio), a renowned investment firm, executed a significant transaction involving Cleveland-Cliffs Inc. This article provides an in-depth analysis of the transaction, the profiles of both entities, and the potential implications of the trade on their respective portfolios.
Details of the Transaction
Vanguard Group Inc (Trades, Portfolio) reduced its stake in Cleveland-Cliffs Inc by 208,887 shares, representing a change of -0.41%. The shares were traded at a price of $17.65 each, leaving Vanguard with a total of 51,040,393 shares in the company. Despite the reduction, Cleveland-Cliffs Inc still constitutes 0.02% of Vanguard's portfolio, with the firm holding a 10.03% stake in the company's total shares.
Profile of Vanguard Group Inc (Trades, Portfolio)
Vanguard Group Inc (Trades, Portfolio), established in 1975 by John C. Bogle, is a mutual funds company with a core purpose of treating all investors fairly and giving them the best chance for investment success. The firm's competitive strategy involves cutting costs to shareholders by redirecting net profits from economies of scale, eliminating sales commissions, and keeping operating expenses low. Vanguard's top holdings include Apple Inc(AAPL, Financial), Amazon.com Inc(AMZN, Financial), Alphabet Inc(GOOGL, Financial), Microsoft Corp(MSFT, Financial), and NVIDIA Corp(NVDA, Financial). The firm's equity stands at a staggering $3,927.41 trillion, with a strong focus on the Technology and Healthcare sectors.
Overview of Cleveland-Cliffs Inc
Cleveland-Cliffs Inc, a flat-rolled steel producer and manufacturer of iron ore pellets in North America, has been operational since its IPO on July 2, 1985. The company operates in the Steel industry and is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. With a market capitalization of $7.48 billion, the company's stock is currently priced at $14.7, with a PE ratio of 33.41. However, the GF Value of the stock stands at 29.11, indicating a possible value trap.
Performance of Cleveland-Cliffs Inc's Stock
Since the transaction, the stock has seen a decrease of 16.71%, with a year-to-date decrease of 12.45%. Despite this, the stock has seen a significant increase of 669.63% since its IPO. The stock's GF Score stands at 92/100, indicating a high outperformance potential. The company's Financial Strength is ranked 5/10, with a Profitability Rank of 8/10 and a Growth Rank of 10/10. The GF Value Rank and Momentum Rank are both 8/10, indicating a strong performance potential.
Comparison with Other Gurus
Other gurus such as Joel Greenblatt (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), and Jefferies Group (Trades, Portfolio) also hold shares in Cleveland-Cliffs Inc. However, the largest guru holder of the stock is Fisher Asset Management, LLC.
Conclusion
The recent transaction by Vanguard Group Inc (Trades, Portfolio) has had a minimal impact on its portfolio, given the small percentage of Cleveland-Cliffs Inc's shares it holds. However, the transaction may have implications for the stock's performance, considering the firm's significant influence in the market. Despite the recent decrease in the stock's price, Cleveland-Cliffs Inc's strong GF Score and high Growth Rank suggest a potential for future growth. Investors are advised to keep a close eye on the stock's performance and the actions of influential gurus like Vanguard Group Inc (Trades, Portfolio).
