MP Materials (NYSE:MP) Shares Down 4.3% - Should You Sell?

Key Points

• MP Materials Corp. shares dropped 4.3% during trading, closing at $70.57 after hitting a low of $69.61.
• Analysts have mixed views on MP Materials, with upgraded price targets ranging from $64.00 to $80.00, while maintaining an overall "Moderate Buy" rating.
• The company reported a quarterly revenue increase of 83.6% year-over-year, with earnings per share of -$0.13, which beat analyst expectations by $0.03.

MP Materials Corp. (NYSE:MP - Get Free Report) dropped 4.3% during trading on Wednesday . The stock traded as low as $69.61 and last traded at $70.57. Approximately 11,359,865 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 9,726,683 shares. The stock had previously closed at $73.77.

Analyst Upgrades and Downgrades

MP has been the subject of a number of recent analyst reports. Robert W. Baird raised their price target on shares of MP Materials from $52.00 to $69.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 23rd. JPMorgan Chase & Co. lifted their price objective on shares of MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Cowen reaffirmed a "buy" rating on shares of MP Materials in a report on Friday, August 8th. Finally, Daiwa Capital Markets initiated coverage on shares of MP Materials in a report on Monday, September 22nd. They issued an "outperform" rating and a $80.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $68.78.

MP Materials Price Performance

The stock has a market capitalization of $12.50 billion, a price-to-earnings ratio of -112.02 and a beta of 2.32. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60. The company has a fifty day simple moving average of $69.20 and a two-hundred day simple moving average of $44.13.

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 for the quarter, beating 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 during the quarter, compared to analysts' expectations of $44.84 million. During the same period in the previous year, the firm earned ($0.17) EPS. The company's quarterly revenue was up 83.6% compared to the same quarter last year. As a group, equities research analysts expect that MP Materials Corp. will post -0.19 earnings per share for the current fiscal year.

Insider Activity at MP Materials

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the company's stock in a transaction dated 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 owned 1,284,409 shares in the company, valued at approximately $92,503,136.18. The trade was a 10.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 12.60% of the company's stock.

Institutional Investors Weigh In On MP Materials

Several institutional investors and hedge funds have recently made changes to their positions in the business. Highline Wealth Partners LLC acquired a new position in MP Materials during the 2nd quarter worth approximately $25,000. AdvisorNet Financial Inc raised its stake in MP Materials by 168.7% during the 2nd 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. NBC Securities Inc. raised its stake in MP Materials by 119,900.0% during the 1st 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. MAI Capital Management raised its stake in MP Materials by 132.7% during the 1st quarter. MAI Capital Management now owns 1,403 shares of the company's stock worth $34,000 after buying an additional 800 shares during the period. Finally, Spire Wealth Management raised its stake in MP Materials by 181.3% during the 2nd 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. Institutional investors own 52.55% of the company's stock.

MP Materials Company Profile

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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