MP Materials (NYSE:MP) Shares Down 5.1% - Should You Sell?

Key Points

• MP Materials shares fell by 5.1% on Monday, trading between $69.01 and $71.24 with significant trading volume decline.
• Analysts have mixed ratings on the stock; while some upgraded it to a "buy," others maintained a "hold" rating, leading to an average rating of "Moderate Buy."
• The company reported a quarterly revenue of $57.39 million, exceeding expectations, and a narrower loss per share of ($0.13), indicating improved performance compared to the previous year.

MP Materials Corp. (NYSE:MP - Get Free Report) shares traded down 5.1% during mid-day trading on Monday . The company traded as low as $69.01 and last traded at $71.24. 6,516,331 shares changed hands during trading, a decline of 29% from the average session volume of 9,229,441 shares. The stock had previously closed at $75.03.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Jefferies Financial Group raised shares of MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price objective on the stock in a report on Friday, August 1st. Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Cfra Research raised shares of MP Materials to a "moderate buy" rating in a report on Monday, August 11th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on shares of MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a report on Thursday, July 17th. Five equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $60.63.

MP Materials Stock Down 3.9%

The company has a market capitalization of $12.77 billion, a P/E ratio of -114.72 and a beta of 2.30. 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 stock has a 50 day moving average price of $49.32 and a 200 day moving average price of $32.71.

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, beating analysts' consensus estimates 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 business had revenue of $57.39 million for the quarter, compared to analysts' expectations of $44.84 million. During the same period in the previous year, the business posted ($0.17) EPS. The firm's quarterly revenue was up 83.6% compared to the same quarter last year. Equities research analysts forecast that MP Materials Corp. will post -0.19 earnings per share for the current fiscal year.

Institutional Investors Weigh In On MP Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MP. Vanguard Group Inc. grew its holdings in MP Materials by 7.4% during the 1st quarter. Vanguard Group Inc. now owns 13,662,567 shares of the company's stock valued at $333,503,000 after buying an additional 942,105 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in MP Materials by 44.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,537,511 shares of the company's stock valued at $101,986,000 after buying an additional 2,005,505 shares in the last quarter. Caxton Associates LLP purchased a new position in MP Materials during the 2nd quarter valued at about $132,238,000. Invesco Ltd. grew its holdings in MP Materials by 14.3% during the 2nd quarter. Invesco Ltd. now owns 3,033,612 shares of the company's stock valued at $100,928,000 after buying an additional 378,510 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its holdings 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 valued at $97,200,000 after buying an additional 1,264,243 shares in the last quarter. 52.55% of the stock is currently 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.

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