MP Materials (NYSE:MP) Trading Down 3.9% - Should You Sell?

Key Points

• Shares of MP Materials Corp. (NYSE:MP) fell by 3.9%, trading as low as $63.41 with a significant drop in trading volume, down 68% from average levels.
• Several analysts maintain a positive outlook on the stock, with a consensus rating of "Moderate Buy" and a target price of $66.88, reflecting optimism about the company's growth potential.
• MP Materials reported earnings showing an 83.6% increase in revenue year-over-year, with a slight beat on EPS expectations, although it continues to experience negative margins.

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price dropped 3.9% during mid-day trading on Thursday . The stock traded as low as $63.59 and last traded at $63.41. Approximately 2,944,609 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 9,252,140 shares. The stock had previously closed at $65.99.

Analyst Upgrades and Downgrades

MP has been the subject of several recent research reports. DA Davidson increased their price objective on shares of MP Materials from $32.00 to $82.00 and gave the company a "buy" rating in a research report on Tuesday, September 2nd. Canaccord Genuity Group increased their price objective on shares of MP Materials from $64.00 to $77.00 and gave the company a "buy" rating in a research report on Friday, August 8th. Benchmark reiterated a "buy" rating on shares of MP Materials in a research note on Friday, August 29th. Cowen reiterated a "buy" rating on shares of MP Materials in a research note on Friday, August 8th. Finally, Wall Street Zen upgraded MP Materials from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Six equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $66.88.

MP Materials Price Performance

The company has a 50 day moving average of $60.66 and a 200-day moving average of $37.73. The stock has a market capitalization of $11.10 billion, a P/E ratio of -99.48 and a beta of 2.32. The company has a quick ratio of 3.12, a current ratio of 3.60 and a debt-to-equity ratio of 0.83.

MP Materials (NYSE:MP - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.03. MP Materials had a negative return on equity of 9.34% and a negative net margin of 41.87%.The firm had revenue of $57.39 million for the quarter, compared to analysts' expectations of $44.84 million. During the same period last year, the business posted ($0.17) earnings per share. The firm's revenue for the quarter was up 83.6% on a year-over-year basis. Sell-side analysts predict that MP Materials Corp. will post -0.19 EPS for the current year.

Insider Transactions at MP Materials

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the firm's stock in a transaction on Friday, August 29th. The stock was sold at an average price of $72.02, for a total value of $10,803,000.00. Following the sale, the chief operating officer directly owned 1,284,409 shares in the company, valued at approximately $92,503,136.18. This trade represents a 10.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 12.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On MP Materials

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its stake in shares of MP Materials by 52.3% during the first quarter. GAMMA Investing LLC now owns 5,750 shares of the company's stock valued at $140,000 after purchasing an additional 1,975 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of MP Materials by 1.2% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,093,057 shares of the company's stock valued at $26,682,000 after purchasing an additional 13,389 shares in the last quarter. Allspring Global Investments Holdings LLC bought a new stake in shares of MP Materials during the first quarter valued at about $213,000. LPL Financial LLC raised its stake in shares of MP Materials by 5.0% during the first quarter. LPL Financial LLC now owns 132,796 shares of the company's stock valued at $3,242,000 after purchasing an additional 6,361 shares in the last quarter. Finally, Illinois Municipal Retirement Fund bought a new stake in shares of MP Materials during the first quarter valued at about $1,460,000. 52.55% of the stock is owned by 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.