Senator Tommy Tuberville has been actively buying Cleveland Cliffs Inc. (CLF:US) stock since 2021. He first started buying the stock in April 2021 and since then, he has accumulated $779,000 to $1,955,000 worth of CLF stock. In light of his minority position on the Subcommittee on Commodities, Risk Management, and Trade, this accumulation merits further looking into. Apart from his accumulation, he has consistently been hedging his position with options.
Cleveland Cliffs Inc. is an American mining company that specializes in the production of iron-ore pellets and is involved in various aspects of the steel and mining industry.
The company has been in the news lately, mainly for the attempted buyout of US Steel Corporation (X:US). Last year, the company proposed a buyout of US Steel Corporation (X), which faced rejection. As rumors started of a bigger buyout offer, the market remained undecided on the company's fate.
However, Nippon Steel came out and made an even bigger offer to buy X. As this news broke, CLF was left holding its pile of cash without any immediate use for it. The shrewd management took this setback as an opportunity and announced an aggressive buyback program, which has sent the stock higher.
In the last three months, the stock has given returns of over 23%, proving that clarity on the future and good management go a long way in determining the performance of a stock.
While Tuberville may not have made outstanding gains on his investments, his persistent buying means he has bought the stock at multiple price levels. As the buyback program is implemented, and the company management refocuses on the business, there is a good possibility that the stock will give him great returns in the coming months.
CLF stock last closed at $17.73, up over 23% in the last 3 months.