MP Materials (NYSE:MP) Shares Down 6.7% - Time to Sell?

Key Points

• MP Materials Corp. shares declined by 6.7%, dropping from a previous close of $89.85 to $83.85 during mid-day trading.
• A report from Deutsche Bank raised the price target for MP Materials from $20.00 to $69.00 and assigned a "hold" rating, while the company holds a consensus target price of $77.80 among analysts.
• The company's revenue increased 83.6% year-over-year, totaling $57.39 million in the latest quarter, surpassing analyst expectations.

MP Materials Corp. (NYSE:MP - Get Free Report) shares were down 6.7% during mid-day trading on Thursday . The company traded as low as $83.33 and last traded at $83.85. Approximately 18,207,137 shares traded hands during trading, an increase of 73% from the average daily volume of 10,526,523 shares. The stock had previously closed at $89.85.

Analyst Ratings Changes

A number of equities analysts have issued reports on MP shares. 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. BMO Capital Markets started coverage on shares of MP Materials in a report on Thursday, October 9th. They set a "market perform" rating and a $76.00 price objective on the stock. DA Davidson lifted their price objective on shares of MP Materials from $32.00 to $82.00 and gave the stock a "buy" rating in a report on Tuesday, September 2nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MP Materials in a report on Wednesday, October 8th. Finally, Canaccord Genuity Group lifted their price objective on shares of MP Materials from $64.00 to $77.00 and gave the stock a "buy" rating in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $77.80.

MP Materials Stock Down 6.7%

The company has a quick ratio of 3.12, a current ratio of 3.60 and a debt-to-equity ratio of 0.83. The stock has a 50-day simple moving average of $71.56 and a 200-day simple moving average of $46.40. The firm has a market capitalization of $14.85 billion, a PE ratio of -133.10 and a beta of 2.32.

MP Materials (NYSE:MP - Get Free Report) last released its 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 return on equity of 9.34% and a negative net margin of 41.87%.The business had revenue of $57.39 million during the quarter, compared to the consensus estimate of $44.84 million. During the same period last year, the business posted ($0.17) earnings per share. The business's revenue for the quarter was up 83.6% on a year-over-year basis. Analysts forecast that MP Materials Corp. will post -0.19 EPS for the current year.

Insider Buying and Selling

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 shares were sold at an average price of $72.02, for a total transaction of $10,803,000.00. Following the sale, the chief operating officer directly owned 1,284,409 shares of the company's stock, valued at $92,503,136.18. This represents a 10.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of MP Materials

A number of institutional investors have recently modified their holdings of MP. Highline Wealth Partners LLC purchased a new stake in shares of MP Materials during the 2nd quarter valued at approximately $25,000. Sound Income Strategies LLC lifted its stake in shares of MP Materials by 420.0% during the 3rd quarter. Sound Income Strategies LLC now owns 364 shares of the company's stock valued at $26,000 after buying an additional 294 shares in the last quarter. AdvisorNet Financial Inc lifted its stake in shares of MP Materials by 168.7% during the 2nd quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock valued at $27,000 after buying an additional 506 shares in the last quarter. MAI Capital Management grew its holdings in MP Materials by 132.7% during the 1st quarter. MAI Capital Management now owns 1,403 shares of the company's stock valued at $34,000 after buying an additional 800 shares in the last quarter. Finally, Spire Wealth Management increased its position in shares of MP Materials by 181.3% during the second quarter. Spire Wealth Management now owns 1,010 shares of the company's stock valued at $34,000 after buying an additional 651 shares during the period. 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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