South Dakota Investment Council Increases Position in MP Materials Corp. $MP

Key Points

• South Dakota Investment Council increased its MP Materials position by 516.1% in the first quarter, bringing its holdings to 51,809 shares valued at approximately $2.5 million. Institutional investors collectively own 52.55% of the company.
• MP Materials reported quarterly revenue of $90.65 million, up 49.1% year over year, and earnings of $0.03 per share, exceeding analysts’ expectations. Despite the improvement, the company posted a negative net margin of 28%.
• Analyst sentiment remains broadly positive, with an average “Buy” rating and a consensus price target of $78.35, although several firms recently reduced their targets and one analyst downgraded the stock to “Sell.”

South Dakota Investment Council boosted its position in MP Materials Corp. (NYSE:MP - Free Report) by 516.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 51,809 shares of the company's stock after acquiring an additional 43,400 shares during the quarter. South Dakota Investment Council's holdings in MP Materials were worth $2,500,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in MP. EMC Capital Management purchased a new position in shares of MP Materials during the 4th quarter valued at about $25,000. Whittier Trust Co. of Nevada Inc. purchased a new stake in MP Materials in the fourth quarter worth approximately $26,000. REAP Financial Group LLC bought a new position in MP Materials during the fourth quarter valued at approximately $26,000. Financial Consulate Inc. grew its position 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 acquiring an additional 472 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new position in shares of MP Materials during the fourth quarter worth approximately $28,000. Institutional investors own 52.55% of the company's stock.

MP Materials Stock Up 9.3%

Shares of NYSE:MP opened at $41.66 on Friday. MP Materials Corp. has a 1 year low of $37.81 and a 1 year high of $100.25. The company has a market cap of $7.42 billion, a PE ratio of -99.18 and a beta of 1.86. The company has a debt-to-equity ratio of 0.47, a current ratio of 7.18 and a quick ratio of 6.58. The stock's 50-day moving average is $55.03 and its 200 day moving average is $58.32.

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 analysts' expectations of $74.82 million. MP Materials had a negative return on equity of 2.27% and a negative net margin of 28.00%.The business's revenue was up 49.1% on a year-over-year basis. During the same quarter last year, the business posted ($0.12) EPS. Sell-side analysts anticipate that MP Materials Corp. will post 0.05 EPS for the current year.

Insider Activity at MP Materials

In other MP Materials news, CFO Ryan Corbett sold 20,000 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $75.00, for a total transaction of $1,500,000.00. Following the transaction, the chief financial officer directly owned 109,017 shares of the company's stock, valued at approximately $8,176,275. The trade was a 15.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Stuart Rosenthal bought 10,000 shares of the company's stock in a transaction dated Tuesday, June 9th. The stock was bought at an average cost of $54.30 per share, with a total value of $543,000.00. Following the completion of the transaction, the chief operating officer owned 136,622 shares in the company, valued at approximately $7,418,574.60. This trade represents a 7.90% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold a total of 905,167 shares of company stock worth $60,161,837 over the last quarter. Corporate insiders own 8.20% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MP. Morgan Stanley upped their price objective on shares of MP Materials from $70.00 to $71.50 and gave the company an "overweight" rating in a research note on Wednesday, July 8th. Citigroup reissued a "positive" rating on shares of MP Materials in a research note on Wednesday, July 15th. Wall Street Zen lowered shares of MP Materials from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. Deutsche Bank Aktiengesellschaft reduced their price objective on MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a research note on Thursday, July 9th. Finally, Barclays decreased their price objective on MP Materials from $69.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $78.35.

Key Headlines Impacting MP Materials

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

• Positive Sentiment: JPMorgan maintains an “overweight” rating: JPMorgan Chase lowered its price target for MP Materials from $75 to $60 but still sees substantial upside from the current level. The continued overweight rating suggests the bank believes the rare-earths producer’s longer-term prospects remain attractive despite the reduced valuation target. Benzinga article
• Neutral Sentiment: Upcoming earnings are expected to improve: Zacks reports that analysts expect MP Materials’ earnings to grow in the upcoming report. However, the company does not currently have the combination of factors that Zacks considers supportive of a likely earnings beat, leaving the immediate earnings catalyst uncertain. MP Materials earnings expectations
• Negative Sentiment: One analyst downgraded the stock: A Seeking Alpha analysis advised investors to “wait for a better entry point,” reflecting concerns over valuation or near-term execution risks even after the recent share-price weakness. MP Materials rating downgrade analysis
• Neutral Sentiment: Peer comparison offers limited immediate direction: A report comparing MP Materials with Atlas Lithium reviews the companies’ investment profiles but does not identify a specific new catalyst for MP Materials. Atlas Lithium and MP Materials comparison

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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