MP Materials Corp. $MP Stock Position Lessened by Dorsey Wright & Associates

Key Points

• Dorsey Wright & Associates sharply reduced its MP Materials stake by 68.9% in the fourth quarter, selling 81,418 shares and ending with 36,834 shares worth about $1.86 million.
• Insider selling has also been notable, including CFO Ryan Corbett’s sale of 20,000 shares and CEO James H. Litinsky’s sale of 259,179 shares, with insiders selling 1.2 million shares worth $79.4 million in the last quarter.
• MP Materials beat earnings expectations in its latest quarter, reporting $0.03 EPS versus a loss estimate and revenue of $90.65 million, while analysts remain broadly bullish with a consensus Buy rating and an average price target of $80.14.

Dorsey Wright & Associates trimmed its holdings in shares of MP Materials Corp. (NYSE:MP - Free Report) by 68.9% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 36,834 shares of the company's stock after selling 81,418 shares during the period. Dorsey Wright & Associates' holdings in MP Materials were worth $1,861,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Whittier Trust Co. of Nevada Inc. acquired a new position in MP Materials during the 4th quarter valued at about $26,000. REAP Financial Group LLC acquired a new stake in shares of MP Materials in the 4th quarter worth approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in shares of MP Materials in the 4th quarter worth approximately $28,000. Financial Consulate Inc. lifted its stake in shares of MP Materials by 555.3% in the 4th quarter. Financial Consulate Inc. now owns 557 shares of the company's stock worth $28,000 after acquiring an additional 472 shares during the period. Finally, Montag A & Associates Inc. boosted its holdings in shares of MP Materials by 106.2% in the third quarter. Montag A & Associates Inc. now owns 635 shares of the company's stock valued at $43,000 after acquiring an additional 327 shares in the last quarter. 52.55% of the stock is currently owned by institutional investors.

Insider Activity at MP Materials

In related news, CFO Ryan Corbett sold 20,000 shares of the stock in a transaction on Friday, May 8th. The stock was 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 trade represents a 15.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO James H. Litinsky sold 259,179 shares of MP Materials 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 completion of the transaction, the chief executive officer directly owned 12,505,965 shares in the company, valued at $800,756,938.95. This represents a 2.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,205,167 shares of company stock worth $79,371,654 in the last quarter. 8.20% of the stock is owned by company insiders.

MP Materials Price Performance

NYSE MP opened at $60.83 on Friday. The stock has a market capitalization of $10.83 billion, a P/E ratio of -144.83 and a beta of 1.86. MP Materials Corp. has a 1 year low of $29.58 and a 1 year high of $100.25. The business's fifty day moving average is $62.22 and its two-hundred day moving average is $59.66. The company has a debt-to-equity ratio of 0.47, a quick ratio of 6.58 and a current ratio of 7.18.

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

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Morgan Stanley raised their price objective on shares of MP Materials from $62.00 to $70.00 and gave the company an "overweight" rating in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of MP Materials in a research report on Tuesday, May 12th. Wedbush increased their price target on MP Materials from $90.00 to $100.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. DA Davidson reiterated a "buy" rating and set a $82.00 price target on shares of MP Materials in a research report on Friday, June 5th. Finally, Barclays started coverage on MP Materials in a research report on Thursday, May 21st. They set an "overweight" rating and a $69.00 price target on the stock. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $80.14.

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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