Texas Yale Capital Corp. Purchases New Position in MP Materials Corp. $MP

Key Points

• Texas Yale Capital Corp. opened a new position in MP Materials in the fourth quarter, buying 35,000 shares worth about $1.77 million.
• MP Materials reported stronger-than-expected quarterly results, posting $0.03 EPS versus an expected loss and revenue of $90.65 million, up 49.1% year over year.
• Wall Street sentiment is mostly positive, with analysts giving the stock a Buy consensus and an average price target of $80.08, though insider selling has also been significant in recent months.

Texas Yale Capital Corp. acquired a new stake in MP Materials Corp. (NYSE:MP - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 35,000 shares of the company's stock, valued at approximately $1,768,000.

Other hedge funds also recently made changes to their positions in the company. Hancock Prospecting Pty Ltd lifted its holdings in shares of MP Materials by 7.2% in the 3rd quarter. Hancock Prospecting Pty Ltd now owns 14,861,212 shares of the company's stock valued at $996,741,000 after purchasing an additional 1,000,000 shares during the last quarter. Vanguard Group Inc. grew its stake in MP Materials by 3.3% during the 4th quarter. Vanguard Group Inc. now owns 14,479,787 shares of the company's stock worth $731,519,000 after buying an additional 459,213 shares during the last quarter. BNP Paribas Financial Markets grew its stake in MP Materials by 76.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company's stock worth $97,200,000 after buying an additional 1,264,243 shares during the last quarter. Reaves W H & Co. Inc. increased its position in MP Materials by 168.4% during the third quarter. Reaves W H & Co. Inc. now owns 2,589,908 shares of the company's stock worth $173,705,000 after buying an additional 1,624,908 shares during the period. Finally, Geode Capital Management LLC increased its position in MP Materials by 8.4% during the fourth quarter. Geode Capital Management LLC now owns 2,544,743 shares of the company's stock worth $128,587,000 after buying an additional 197,375 shares during the period. Hedge funds and other institutional investors own 52.55% of the company's stock.

MP Materials Trading Down 0.2%

Shares of MP stock opened at $64.57 on Monday. The company has a market capitalization of $11.50 billion, a P/E ratio of -153.75 and a beta of 1.86. The company has a current ratio of 7.18, a quick ratio of 6.58 and a debt-to-equity ratio of 0.47. The business's 50 day moving average is $59.36 and its two-hundred day moving average is $59.49. MP Materials Corp. has a twelve month low of $19.60 and a twelve month high of $100.25.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.03 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $74.82 million. During the same quarter in the prior year, the business earned ($0.12) earnings per share. The company's quarterly revenue was up 49.1% compared to the same quarter last year. Equities analysts forecast that MP Materials Corp. will post -0.04 EPS for the current year.

Analyst Ratings Changes

MP has been the subject of several research analyst reports. Morgan Stanley increased their price objective on MP Materials from $62.00 to $70.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of MP Materials in a report on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d-)" rating on shares of MP Materials in a research note on Tuesday, April 21st. Canaccord Genuity Group set a $82.00 price objective on shares of MP Materials in a research report on Friday, May 8th. Finally, DA Davidson restated a "buy" rating and issued a $82.00 price objective on shares of MP Materials in a research note on Wednesday, May 20th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $80.08.

Insiders Place Their Bets

In other news, CEO James H. Litinsky sold 259,179 shares of the business's stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $64.03, for a total transaction of $16,595,231.37. Following the transaction, the chief executive officer directly owned 12,505,965 shares in the company, valued at $800,756,938.95. The trade was a 2.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ryan Corbett sold 46,000 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $60.00, for a total transaction of $2,760,000.00. Following the transaction, the chief financial officer owned 129,017 shares in the company, valued at approximately $7,741,020. This trade represents a 26.28% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,066,000 shares of company stock worth $69,329,207. 8.20% of the stock is owned by insiders.

About MP Materials

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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