EverSource Wealth Advisors LLC Raises Holdings in MP Materials Corp. $MP

Key Points

• EverSource Wealth Advisors increased its MP Materials stake by 1,679.2% in the second quarter, bringing its holdings to 41,561 shares valued at $2.33 million. Institutional investors collectively own 52.55% of the company.
• Analyst sentiment remains broadly positive, with a consensus “Buy” rating and $78.21 price target, although several firms recently lowered their targets and some issued sell recommendations.
• MP Materials reported quarterly revenue of $108.49 million, up 89% year over year, while matching expectations with a $0.01-per-share loss. Despite the strong revenue growth, the company remains unprofitable and insiders have sold roughly $39 million of stock over the past 90 days.

EverSource Wealth Advisors LLC lifted its position in shares of MP Materials Corp. (NYSE:MP - Free Report) by 1,679.2% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 41,561 shares of the company's stock after buying an additional 39,225 shares during the quarter. EverSource Wealth Advisors LLC's holdings in MP Materials were worth $2,328,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in MP. Hunter Associates Investment Management LLC purchased a new stake in MP Materials in the second quarter worth about $493,000. WMS Group LLC increased its position in MP Materials by 3.3% during the 2nd quarter. WMS Group LLC now owns 11,326 shares of the company's stock valued at $634,000 after purchasing an additional 362 shares during the period. BankChampaign National Association raised its holdings in shares of MP Materials by 4.9% in the 2nd quarter. BankChampaign National Association now owns 10,368 shares of the company's stock valued at $581,000 after purchasing an additional 485 shares in the last quarter. Nations Financial Group Inc. IA ADV bought a new stake in shares of MP Materials in the 2nd quarter valued at about $404,000. Finally, Cornerstone Wealth Management LLC lifted its position in shares of MP Materials by 16.3% in the 2nd quarter. Cornerstone Wealth Management LLC now owns 11,636 shares of the company's stock worth $652,000 after purchasing an additional 1,632 shares during the period. Hedge funds and other institutional investors own 52.55% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on MP. Needham & Company LLC dropped their price objective on shares of MP Materials from $81.00 to $73.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Canaccord Genuity Group set a $82.00 target price on MP Materials in a report on Friday, May 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MP Materials in a research report on Friday, July 17th. Wall Street Zen downgraded MP Materials from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. Finally, Deutsche Bank Aktiengesellschaft dropped their price objective on MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, MP Materials has an average rating of "Buy" and a consensus price target of $78.21.

MP Materials Stock Performance

Shares of MP stock opened at $55.67 on Friday. MP Materials Corp. has a 12-month low of $37.81 and a 12-month high of $100.25. The business's fifty day simple moving average is $51.63 and its 200-day simple moving average is $57.09. 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 market cap of $9.91 billion, a PE ratio of -163.72 and a beta of 1.88.

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

Insider Transactions at MP Materials

In related news, COO Michael Stuart Rosenthal acquired 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The stock was purchased at an average cost of $54.30 per share, with a total value of $543,000.00. Following the transaction, the chief operating officer directly owned 136,622 shares of the company's stock, valued at $7,418,574.60. This trade represents a 7.90% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO James H. Litinsky sold 185,167 shares of MP Materials stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $69.14, for a total transaction of $12,802,446.38. Following the completion of the sale, the chief executive officer owned 11,620,798 shares of the company's stock, valued at $803,461,973.72. This trade represents a 1.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 585,167 shares of company stock worth $39,028,272 in the last 90 days. Insiders own 8.20% of the company's stock.

Key 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 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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