Cleveland‑Cliffs CEO Losurenco Off‑loads 3 Million Shares in Wake of Quarterly Loss, Sparking Investor Concern

Insider Selling Continues Amid Weak Earnings

Cleveland‑Cliffs shares slipped in the days after the company reported a fourth‑quarter loss, and the latest filing shows Chairman, President and CEO GONCALVES LOURENCO divesting 3 million common shares at an average price of $12.42. The sale came just one day after the company’s earnings miss, which highlighted weaker automotive demand and a sharp drop in net operating profit. The price impact on the market was modest—$12.48 versus $12.27 on the close two days earlier—but the broader context of a 14 % weekly decline and a 3 % monthly decline amplifies the perception that insiders are taking advantage of a down‑trending share price.

What the Deal Signals for Investors

Insider activity is often viewed as a proxy for confidence—or lack thereof—in a company’s near‑term prospects. LOURENCO’s sale, which sold out the entire 3 million‑share holding he had built over the past year, suggests a tightening liquidity position and a willingness to monetize holdings during a period of price weakness. The transaction also coincides with a sharp increase in social‑media buzz (171 % above average) and a negative sentiment score of –31, underscoring growing investor unease. For shareholders, the move may be interpreted as a warning sign that top leadership is not optimistic about the company’s ability to rebound quickly from the current earnings miss and the ongoing supply‑chain and market challenges that have depressed steel prices.

A Look at LOURENCO’s Historical Pattern

LOURENCO has sold shares on several occasions since the beginning of 2026. His first sale on January 5, 2026, off‑loaded 84,229 shares at $13.20, a price roughly 4 % above the current trading level, leaving him with 3,015,486 shares. The 2026 February sale represents a more aggressive liquidation, removing the bulk of his remaining stake. Historically, his transactions have been conducted at prices close to the market average, indicating that he is not seeking premium valuations but rather cashing in as the share price falls. Compared to peers such as EVP‑CFO GONCALVES CELSO L Jr and EVP‑CEO GONCALVES LOURENCO, the pattern suggests a conservative stance: selling when the price dips below recent highs and maintaining a modest holding when the market is stronger.

Implications for the Company’s Future

The continued sell‑offs from the top executives raise questions about the firm’s ability to attract and retain capital in a depressed steel market. Cleveland‑Cliffs is already grappling with a negative earnings‑per‑share figure, a P/E ratio of –5.08, and a declining revenue trend. The partnership with POSCO, still under due‑diligence review, remains the only bright spot, but the lack of a concrete timeline creates uncertainty. If the company can not reverse the trend in demand, especially in the automotive sector, insiders may continue to liquidate their positions, potentially accelerating a further decline in share price and forcing the board to consider strategic alternatives such as divestitures or capital restructuring.

Bottom Line for Investors

LOURENCO’s recent sale is a clear signal that insiders are wary of Cleveland‑Cliffs’ near‑term outlook. While the sale itself may not move the market dramatically, it adds to a narrative of declining confidence among company leadership. Investors should monitor subsequent earnings releases and any progress on the POSCO partnership, as well as any further insider activity, to gauge whether the stock’s downward trajectory will continue or stabilize.