MP Materials (NYSE:MP) Shares Up 1.2% - Should You Buy?

Key Points

• MP Materials Corp. shares increased by 1.2%, reaching a last traded price of $70.67, while trading volume saw a significant 70% decline compared to average levels.
• Analysts have recently upgraded MP Materials with multiple buy ratings, setting a price target as high as $80.00, indicating a positive outlook on the stock.
• The company reported revenue of $57.39 million for the last quarter, significantly exceeding estimates, and recorded an 83.6% year-over-year increase despite posting a negative earnings per share.

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price shot up 1.2% during mid-day trading on Wednesday . The stock traded as high as $71.48 and last traded at $70.67. 2,817,239 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 9,304,640 shares. The stock had previously closed at $69.83.

Analysts Set New Price Targets

Several research firms have recently issued reports on MP. Jefferies Financial Group upgraded MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price target on the stock in a research report on Friday, August 1st. Cfra Research raised MP Materials to a "moderate buy" rating in a research note on Monday, August 11th. Deutsche Bank Aktiengesellschaft raised their price objective on MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a research note on Thursday, July 17th. Robert W. Baird raised their price objective on MP Materials from $52.00 to $69.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 23rd. Finally, Cowen reaffirmed a "buy" rating on shares of MP Materials in a research note on Friday, August 8th. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $60.63.

MP Materials Price Performance

The company has a 50 day simple moving average of $54.87 and a 200-day simple moving average of $34.89. The stock has a market cap of $12.60 billion, a price-to-earnings ratio of -112.85 and a beta of 2.30. The company has a current ratio of 3.60, a quick ratio of 3.12 and a debt-to-equity ratio of 0.83.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.13) earnings per share (EPS) 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 for the quarter, compared to the consensus estimate of $44.84 million. During the same quarter last year, the business posted ($0.17) EPS. The company's revenue for the quarter was up 83.6% on a year-over-year basis. Research analysts expect that MP Materials Corp. will post -0.19 EPS for the current year.

Hedge Funds Weigh In On MP Materials

Hedge funds and other institutional investors have recently bought and sold shares of the business. Highline Wealth Partners LLC bought a new stake in shares of MP Materials during the second quarter worth approximately $25,000. AdvisorNet Financial Inc raised its position in MP Materials by 168.7% during the second quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock valued at $27,000 after purchasing an additional 506 shares in the last quarter. NBC Securities Inc. increased its holdings in shares of MP Materials by 119,900.0% during the first quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after buying an additional 1,199 shares in the last quarter. MAI Capital Management increased its holdings in shares of MP Materials by 132.7% during the first quarter. MAI Capital Management now owns 1,403 shares of the company's stock worth $34,000 after buying an additional 800 shares in the last quarter. Finally, Spire Wealth Management increased its holdings 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 worth $34,000 after buying an additional 651 shares in the last quarter. Institutional investors own 52.55% of the company's stock.

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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