RFG Advisory LLC Decreases Stake in MP Materials Corp. $MP

Key Points

• RFG Advisory LLC cut its stake in MP Materials by 57.9% in the first quarter, leaving it with 46,116 shares worth about $2.23 million.
• MP Materials reported better-than-expected Q1 earnings, posting $0.03 EPS versus the expected loss and revenue of $90.65 million, up 49.1% year over year.
• Analyst sentiment remains mostly positive, with MP holding an average “Buy” rating and a consensus price target of $80.14, even as insiders have recently shown mixed activity through both stock sales and purchases.

RFG Advisory LLC cut its holdings in shares of MP Materials Corp. (NYSE:MP - Free Report) by 57.9% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 46,116 shares of the company's stock after selling 63,470 shares during the period. RFG Advisory LLC's holdings in MP Materials were worth $2,226,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Private Advisory Group LLC purchased a new position in shares of MP Materials during the 4th quarter valued at approximately $9,702,000. Polianta Ltd acquired a new stake in shares of MP Materials during the fourth quarter worth approximately $1,227,000. Dorsey Wright & Associates increased its stake in shares of MP Materials by 84.1% in the third quarter. Dorsey Wright & Associates now owns 118,252 shares of the company's stock worth $7,931,000 after buying an additional 54,031 shares during the last quarter. South Dakota Investment Council acquired a new stake in MP Materials in the third quarter valued at $1,617,000. Finally, Intech Investment Management LLC acquired a new stake in MP Materials in the third quarter valued at $3,505,000. 52.55% of the stock is owned by hedge funds and other institutional investors.

MP Materials Stock Performance

Shares of MP stock opened at $53.95 on Friday. The company has a market cap of $9.60 billion, a P/E ratio of -128.44 and a beta of 1.86. The business has a 50 day moving average of $62.38 and a two-hundred day moving average of $59.55. MP Materials Corp. has a 52 week low of $29.58 and a 52 week high of $100.25. The company has a quick ratio of 6.58, a current ratio of 7.18 and a debt-to-equity ratio of 0.47.

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

Analyst Ratings Changes

MP has been the topic of a number of research analyst reports. Barclays began coverage on shares of MP Materials in a research note on Thursday, May 21st. They set an "overweight" rating and a $69.00 price objective on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of MP Materials in a research note on Tuesday, April 21st. Wedbush increased their price target on shares of MP Materials from $90.00 to $100.00 and gave the stock an "outperform" rating in a research report on Friday, May 8th. William Blair reaffirmed an "outperform" rating on shares of MP Materials in a research report on Wednesday, March 4th. Finally, Wall Street Zen upgraded MP Materials from a "sell" rating to a "hold" rating in a research note on Sunday, March 8th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, MP Materials currently has an average rating of "Buy" and an average price target of $80.14.

Insiders Place Their Bets

In other news, CEO James H. Litinsky sold 185,167 shares of the business's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $69.14, for a total transaction of $12,802,446.38. Following the completion of the transaction, the chief executive officer owned 11,620,798 shares of the company's stock, valued at approximately $803,461,973.72. The trade was a 1.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO Michael Stuart Rosenthal purchased 10,000 shares of MP Materials stock in a transaction dated Tuesday, June 9th. The shares were purchased at an average cost of $54.30 per share, with a total value of $543,000.00. Following the acquisition, the chief operating officer owned 136,622 shares of the company's stock, valued at approximately $7,418,574.60. This trade represents a 7.90% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold 1,205,167 shares of company stock valued at $79,371,654 over the last three months. 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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