D.A. Davidson & CO. Cuts Stock Position in MP Materials Corp. $MP

Key Points

• D.A. Davidson reduced its MP Materials position by 34.8% in the second quarter, selling 23,582 shares and retaining 44,190 shares valued at approximately $2.48 million.
• MP Materials reported strong second-quarter revenue growth of 89% year over year to $108.49 million and narrowed its loss, although the company remains unprofitable and faces valuation and execution risks.
• Analysts maintain a consensus “Buy” rating with an average price target of $78.21, while institutional investors collectively own 52.55% of MP’s outstanding shares.

D.A. Davidson & CO. decreased its position in shares of MP Materials Corp. (NYSE:MP - Free Report) by 34.8% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 44,190 shares of the company's stock after selling 23,582 shares during the period. D.A. Davidson & CO.'s holdings in MP Materials were worth $2,475,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of MP. Costello Asset Management INC increased its stake in MP Materials by 15.0% during the fourth quarter. Costello Asset Management INC now owns 1,300 shares of the company's stock worth $66,000 after purchasing an additional 170 shares during the period. Composition Wealth LLC boosted its stake in shares of MP Materials by 0.9% in the fourth quarter. Composition Wealth LLC now owns 18,334 shares of the company's stock valued at $926,000 after purchasing an additional 172 shares during the period. ARS Investment Partners LLC grew its holdings in shares of MP Materials by 1.0% in the fourth quarter. ARS Investment Partners LLC now owns 19,980 shares of the company's stock valued at $1,009,000 after purchasing an additional 200 shares in the last quarter. Cresset Asset Management LLC grew its holdings in shares of MP Materials by 1.0% in the second quarter. Cresset Asset Management LLC now owns 21,444 shares of the company's stock valued at $713,000 after purchasing an additional 204 shares in the last quarter. Finally, Kestra Private Wealth Services LLC increased its stake in MP Materials by 1.8% during the 4th quarter. Kestra Private Wealth Services LLC now owns 12,232 shares of the company's stock worth $618,000 after buying an additional 212 shares during the period. 52.55% of the stock is currently owned by hedge funds and other institutional investors.

More MP Materials News

Here are the key news stories impacting MP Materials this week:

• Positive Sentiment: Strong Q2 growth: MP reported second-quarter revenue of $108.49 million, an 89% year-over-year increase, while its net loss narrowed and NdPr rare-earth output improved. The results helped drive a recent rally despite the company missing some earnings expectations. MP Gains 15% Despite Q2 Earnings Miss: How to Play the Stock?
• Positive Sentiment: Magnet and supply-chain expansion: New supply activity with major customers and MP’s efforts to build a U.S. mine-to-magnet business strengthen its strategic importance as the country seeks to reduce dependence on China for rare earths. How the U.S. Is Trying to Copy China’s Supply Chain Playbook
• Positive Sentiment: Favorable long-term theme: Analysts and market commentary continue to frame MP as a way to invest in technology infrastructure and domestic critical-mineral capacity, supporting the company’s long-term investment narrative. SpaceX vs. MP Materials: 2 Very Different Ways to Bet on the Next Decade of Tech
• Neutral Sentiment: MP’s presentation at Canaccord Genuity’s growth conference provides additional visibility into its strategy and outlook, but the available report does not identify a new financial catalyst. MP Materials Corp. Presents at Canaccord Genuity's Growth Conference
• Negative Sentiment: Profitability and valuation risks: MP remains loss-making, faces high operating costs and has seen estimates reduced. Commentary also warns that the stock trades at a premium valuation, leaving it vulnerable if production growth or magnet commercialization falls short. Is MP Materials Undervalued Following Q2 Revenue Growth and New Magnet Supply Deals?

MP Materials Price Performance

MP Materials stock opened at $55.67 on Friday. The company has a current ratio of 9.51, a quick ratio of 8.56 and a debt-to-equity ratio of 0.48. The company has a fifty day simple moving average of $51.63 and a 200-day simple moving average of $57.09. The stock has a market cap of $9.91 billion, a P/E ratio of -163.72 and a beta of 1.88. MP Materials Corp. has a 12-month low of $37.81 and a 12-month high of $100.25.

MP Materials (NYSE:MP - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.01). The company had revenue of $108.49 million for the quarter, compared to analysts' expectations of $96.89 million. MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%.MP Materials's quarterly revenue was up 89.0% on a year-over-year basis. During the same period last year, the firm earned ($0.13) earnings per share. Equities analysts expect that MP Materials Corp. will post -0.03 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have commented on MP shares. JPMorgan Chase & Co. decreased their price target on shares of MP Materials from $75.00 to $60.00 and set an "overweight" rating for the company in a research report on Wednesday, July 29th. Wedbush upped their price objective on MP Materials from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. DA Davidson reiterated a "buy" rating and issued a $82.00 price objective on shares of MP Materials in a research note on Friday, June 5th. Canaccord Genuity Group set a $82.00 target price on MP Materials in a report on Friday, May 8th. Finally, Morgan Stanley boosted their target price on MP Materials from $70.00 to $71.50 and gave the stock an "overweight" rating in a research note on Wednesday, July 8th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $78.21.

Insider Buying and Selling at MP Materials

In related news, CEO James H. Litinsky sold 234,651 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $65.87, for a total value of $15,456,461.37. Following the transaction, the chief executive officer directly owned 11,855,965 shares of the company's stock, valued at $780,952,414.55. This trade represents a 1.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Michael Stuart Rosenthal acquired 17,000 shares of MP Materials stock in a transaction on Wednesday, May 20th. The stock was purchased at an average price of $56.62 per share, with a total value of $962,540.00. Following the purchase, the chief operating officer owned 1,333,673 shares of the company's stock, valued at $75,512,565.26. The trade was a 1.29% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders sold 585,167 shares of company stock valued at $39,028,272. Company insiders own 8.20% of the company's stock.

MP Materials Company 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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