MP Materials (NYSE:MP) Rating Increased to Strong-Buy at Daiwa America

Key Points

• MP Materials was upgraded to a "strong-buy" rating by Daiwa America, indicating a positive outlook from analysts on the company’s stock.
• Analyst price targets for MP Materials have risen significantly, with a consensus target price of $68.33 following various analysts' upgrades.
• The company reported a 83.6% increase in revenue year-over-year, surpassing analysts' estimates and indicating strong financial performance.

MP Materials (NYSE:MP - Get Free Report) was upgraded by analysts at Daiwa America to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

Other research analysts have also issued reports about the stock. Jefferies Financial Group upgraded shares of MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price objective for the company in a research note on Friday, August 1st. JPMorgan Chase & Co. lifted their price objective on shares of MP Materials from $18.00 to $64.00 and gave the company a "neutral" rating in a research note on Monday, July 21st. Daiwa Capital Markets started coverage on shares of MP Materials in a research note on Monday. They issued an "outperform" rating and a $80.00 price objective for the company. Canaccord Genuity Group lifted their price objective on shares of MP Materials from $64.00 to $77.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the company an "equal weight" rating in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $68.33.

MP Materials Trading Down 4.7%

NYSE:MP opened at $71.16 on Monday. The company has a current ratio of 3.60, a quick ratio of 3.12 and a debt-to-equity ratio of 0.83. The stock has a market capitalization of $12.60 billion, a PE ratio of -112.94 and a beta of 2.32. The firm's 50 day moving average is $67.46 and its 200 day moving average is $41.18. MP Materials has a 12 month low of $15.56 and a 12 month high of $82.50.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.13) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.03. MP Materials had a negative net margin of 41.87% and a negative return on equity of 9.34%. The business had revenue of $57.39 million during the quarter, compared to analyst estimates of $44.84 million. During the same period in the previous year, the business earned ($0.17) EPS. MP Materials's revenue was up 83.6% compared to the same quarter last year. Sell-side analysts expect that MP Materials will post -0.19 earnings per share for the current year.

Insider Activity at MP Materials

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of the business's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $72.02, for a total transaction of $10,803,000.00. Following the completion of the transaction, the chief operating officer directly owned 1,284,409 shares in the company, valued at $92,503,136.18. The trade was a 10.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MP. Caxton Associates LLP purchased a new position in MP Materials in the second quarter worth $132,238,000. National Bank of Canada FI grew its position in MP Materials by 19,314.3% in the second quarter. National Bank of Canada FI now owns 2,013,462 shares of the company's stock worth $66,987,000 after acquiring an additional 2,003,091 shares in the last quarter. Driehaus Capital Management LLC purchased a new position in MP Materials in the first quarter worth $34,288,000. BNP Paribas Financial Markets grew its position in MP Materials by 76.3% in the second quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company's stock worth $97,200,000 after acquiring an additional 1,264,243 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in MP Materials by 429.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,550,124 shares of the company's stock worth $37,839,000 after acquiring an additional 1,257,282 shares in the last quarter. 52.55% of the stock is currently owned by hedge funds and other institutional investors.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals.

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