MP Materials (NYSE:MP) Shares Gap Up on Strong Earnings

Key Points

• MP Materials Corp. experienced a significant rise in its stock price, opening at $76.94 after closing at $71.07, driven by stronger than expected earnings.
• The company reported an EPS of (0.13), exceeding the consensus estimate of (0.16), with revenues up 83.6% year-over-year at $57.39 million.
• Analysts show optimism for MP Materials, with multiple firms raising price targets significantly, including Canaccord Genuity's new target of $55.00 and Deutsche Bank's target of $69.00.

MP Materials Corp. (NYSE:MP - Get Free Report) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $71.07, but opened at $76.94. MP Materials shares last traded at $72.99, with a volume of 8,439,772 shares changing hands.

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 net margin of 48.41% and a negative return on equity of 9.77%. The firm 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 firm posted ($0.17) EPS. The firm's revenue for the quarter was up 83.6% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on MP shares. Canaccord Genuity Group raised their price target on MP Materials from $27.00 to $55.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Wall Street Zen upgraded MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of MP Materials from $20.00 to $69.00 and gave the company a "hold" rating in a research note on Thursday, July 17th. JPMorgan Chase & Co. raised their price target on shares of MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. Finally, Robert W. Baird boosted their price objective on shares of MP Materials from $52.00 to $69.00 and gave the company an "outperform" rating in a research report on Wednesday, July 23rd. Five analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $57.88.

Institutional Trading of MP Materials

A number of institutional investors have recently modified their holdings of MP. Sei Investments Co. purchased a new stake in shares of MP Materials during the 4th quarter valued at about $156,000. LPL Financial LLC grew its position in MP Materials by 11.2% in the fourth quarter. LPL Financial LLC now owns 126,435 shares of the company's stock valued at $1,972,000 after acquiring an additional 12,782 shares in the last quarter. ExodusPoint Capital Management LP purchased a new stake in shares of MP Materials during the fourth quarter valued at approximately $867,000. Resona Asset Management Co. Ltd. acquired a new position in shares of MP Materials during the fourth quarter worth $86,000. Finally, Envestnet Asset Management Inc. boosted its stake in shares of MP Materials by 3.3% in the fourth quarter. Envestnet Asset Management Inc. now owns 20,650 shares of the company's stock valued at $322,000 after purchasing an additional 662 shares during the period. Hedge funds and other institutional investors own 52.55% of the company's stock.

MP Materials Stock Up 5.4%

The firm's 50 day moving average price is $43.15 and its two-hundred day moving average price is $30.33. The firm has a market capitalization of $12.25 billion, a PE ratio of -114.08 and a beta of 2.30. The company has a quick ratio of 3.58, a current ratio of 4.12 and a debt-to-equity ratio of 0.81.

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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