MP Materials (NYSE:MP) Shares Gap Up - Here's Why

Key Points

• MP Materials Corp. shares opened at $73.65, after closing at $70.59, with the latest trading price at $75.11 and a trading volume of 5,777,822 shares.
• Several research firms have recently raised their price targets for MP Materials, with BMO Capital Markets setting a target of $76.00 and JPMorgan Chase increasing their target from $18.00 to $64.00.
• The company reported a revenue of $57.39 million for the last quarter, exceeding analysts' expectations, and had a significant year-over-year revenue increase of 83.6%.

MP Materials Corp. (NYSE:MP - Get Free Report) shares gapped up prior to trading on Thursday . The stock had previously closed at $70.59, but opened at $73.65. MP Materials shares last traded at $75.11, with a volume of 5,777,822 shares trading hands.

Analyst Ratings Changes

A number of research firms have weighed in on MP. JPMorgan Chase & Co. boosted their price target on shares of MP Materials from $18.00 to $64.00 and gave the company a "neutral" rating in a research report on Monday, July 21st. BMO Capital Markets began coverage on shares of MP Materials in a research report on Thursday. They issued a "market perform" rating and a $76.00 price target on the stock. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Benchmark reissued a "buy" rating on shares of MP Materials in a research report on Friday, August 29th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of MP Materials in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $74.00.

MP Materials Stock Up 2.5%

The stock's fifty day moving average is $69.40 and its two-hundred day moving average is $44.31. 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 firm has a market cap of $12.81 billion, a P/E ratio of -114.84 and a beta of 2.32.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.03. The firm had revenue of $57.39 million for the quarter, compared to analyst estimates of $44.84 million. MP Materials had a negative net margin of 41.87% and a negative return on equity of 9.34%. The business's revenue for the quarter was up 83.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.17) EPS. As a group, research analysts anticipate that MP Materials Corp. will post -0.19 earnings per share for the current year.

Insider Activity at MP Materials

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of the stock in a transaction on 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 transaction, the chief operating officer owned 1,284,409 shares of the company's stock, valued at $92,503,136.18. This represents a 10.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On MP Materials

Several institutional investors and hedge funds have recently made changes to their positions in the business. Wedmont Private Capital grew its holdings in MP Materials by 1.7% in the 3rd quarter. Wedmont Private Capital now owns 11,824 shares of the company's stock worth $872,000 after acquiring an additional 195 shares during the last quarter. Cresset Asset Management LLC grew its holdings in MP Materials by 1.0% in the 2nd quarter. Cresset Asset Management LLC now owns 21,444 shares of the company's stock worth $713,000 after acquiring an additional 204 shares during the last quarter. Harbour Investments Inc. grew its holdings in MP Materials by 32.9% in the 2nd quarter. Harbour Investments Inc. now owns 1,220 shares of the company's stock worth $41,000 after acquiring an additional 302 shares during the last quarter. AdvisorNet Financial Inc grew its holdings in MP Materials by 40.7% in the 3rd quarter. AdvisorNet Financial Inc now owns 1,134 shares of the company's stock worth $76,000 after acquiring an additional 328 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its holdings in MP Materials by 2.8% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 12,955 shares of the company's stock worth $412,000 after acquiring an additional 358 shares during the last quarter. 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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