MP Materials (NYSE:MP) Shares Down 4.1% - Should You Sell?

Key Points

• MP Materials shares experienced a 4.1% decline, falling to $61.53, with a trading volume significantly lower than average.
• Analysts have mixed ratings on MP Materials, with several upgrades, including a price target increase from DA Davidson to $82.00, while others have maintained a "hold" rating.
• The company reported an 83.6% year-over-year increase in revenue, totaling $57.39 million for the last quarter, surpassing estimates, but posted a negative EPS of ($0.13).

Shares of MP Materials Corp. (NYSE:MP - Get Free Report) traded down 4.1% during trading on Friday . The stock traded as low as $61.72 and last traded at $61.53. 2,897,059 shares were traded during trading, a decline of 69% from the average session volume of 9,243,959 shares. The stock had previously closed at $64.18.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. DA Davidson upped their price target on shares of MP Materials from $32.00 to $82.00 and gave the stock a "buy" rating in a research report on Tuesday. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Canaccord Genuity Group increased their price objective on shares of MP Materials from $64.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Cfra Research raised shares of MP Materials to a "moderate buy" rating in a research report on Monday, August 11th. Finally, Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $66.88.

MP Materials Stock Down 1.9%

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 $11.15 billion, a P/E ratio of -99.92 and a beta of 2.32. The stock's 50 day simple moving average is $59.47 and its 200 day simple moving average is $36.99.

MP Materials (NYSE:MP - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping 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 company had revenue of $57.39 million for the quarter, compared to the consensus estimate of $44.84 million. During the same period last year, the firm posted ($0.17) EPS. The company's revenue for the quarter was up 83.6% on a year-over-year basis. As a group, research analysts predict that MP Materials Corp. will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling at MP Materials

In related news, COO Michael Stuart Rosenthal sold 150,000 shares of the stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $72.02, for a total value of $10,803,000.00. Following the sale, the chief operating officer owned 1,284,409 shares of the company's stock, valued at $92,503,136.18. This trade represents a 10.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On MP Materials

Large investors have recently made changes to their positions in the business. Highline Wealth Partners LLC bought a new position in shares of MP Materials during the 2nd quarter valued at about $25,000. AdvisorNet Financial Inc boosted its holdings in shares of MP Materials by 168.7% in the second quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock worth $27,000 after buying an additional 506 shares during the period. Spire Wealth Management boosted its holdings in shares of MP Materials by 181.3% in the second quarter. Spire Wealth Management now owns 1,010 shares of the company's stock worth $34,000 after buying an additional 651 shares during the period. NBC Securities Inc. boosted its holdings in shares of MP Materials by 119,900.0% in the first quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after buying an additional 1,199 shares during the period. Finally, Harbour Investments Inc. boosted its holdings in shares of MP Materials by 32.9% in the second quarter. Harbour Investments Inc. now owns 1,220 shares of the company's stock worth $41,000 after buying an additional 302 shares during the period. Institutional investors own 52.55% of the company's stock.

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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