Capital Financial Group Inc. Co. ADV Purchases New Stake in MP Materials Corp. $MP

Key Points

• Capital Financial Group opened a new position in MP Materials during the fourth quarter, buying 23,715 shares worth about $1.2 million.
• Several analysts remain bullish on MP Materials, with recent ratings including buy or outperform calls and a consensus price target of $80.14.
• Insider selling has been notable, including CEO James H. Litinsky and CFO Ryan Corbett, while the company’s latest quarter beat expectations with higher-than-expected EPS and revenue.

Capital Financial Group Inc. Co. ADV purchased a new stake in MP Materials Corp. (NYSE:MP - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 23,715 shares of the company's stock, valued at approximately $1,198,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Whittier Trust Co. of Nevada Inc. acquired a new stake in MP Materials in the fourth quarter valued at $26,000. REAP Financial Group LLC bought a new stake in MP Materials during the fourth quarter valued at $26,000. Los Angeles Capital Management LLC bought a new stake in MP Materials during the fourth quarter valued at $28,000. Financial Consulate Inc. increased its stake in MP Materials by 555.3% during the fourth quarter. Financial Consulate Inc. now owns 557 shares of the company's stock valued at $28,000 after purchasing an additional 472 shares during the last quarter. Finally, Montag A & Associates Inc. increased its stake in MP Materials by 106.2% during the third quarter. Montag A & Associates Inc. now owns 635 shares of the company's stock valued at $43,000 after purchasing an additional 327 shares during the last quarter. 52.55% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CEO James H. Litinsky sold 259,179 shares of the company's stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $64.03, for a total value of $16,595,231.37. Following the transaction, the chief executive officer owned 12,505,965 shares in the company, valued at $800,756,938.95. This represents a 2.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ryan Corbett sold 20,000 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $75.00, for a total value of $1,500,000.00. Following the completion of the transaction, the chief financial officer owned 109,017 shares in the company, valued at $8,176,275. This represents a 15.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,205,167 shares of company stock worth $79,371,654 in the last 90 days. Company insiders own 8.20% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on MP. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of MP Materials in a research note on Tuesday, May 12th. Wedbush increased their target price on shares of MP Materials from $90.00 to $100.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MP Materials in a research report on Tuesday, April 21st. Morgan Stanley upped their price target on shares of MP Materials from $62.00 to $70.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Finally, Needham & Company LLC started coverage on shares of MP Materials in a report on Monday, June 1st. They issued a "buy" rating and a $81.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus price target of $80.14.

MP Materials Price Performance

MP stock opened at $58.27 on Tuesday. The company has a current ratio of 7.18, a quick ratio of 6.58 and a debt-to-equity ratio of 0.47. MP Materials Corp. has a one year low of $29.58 and a one year high of $100.25. The firm has a market capitalization of $10.37 billion, a PE ratio of -138.74 and a beta of 1.86. The firm has a 50-day moving average of $61.65 and a two-hundred day moving average of $59.68.

MP Materials (NYSE:MP - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.03 EPS for the quarter, beating analysts' consensus estimates of ($0.01) by $0.04. The company had revenue of $90.65 million during the quarter, compared to analyst estimates of $74.82 million. MP Materials had a negative net margin of 28.00% and a negative return on equity of 2.27%. The business's quarterly revenue was up 49.1% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.12) earnings per share. On average, analysts forecast that MP Materials Corp. will post -0.04 earnings per share for the current year.

MP Materials Profile

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.

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