MP Materials (NYSE:MP) Shares Up 46.1% - Should You Buy?

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price was up 46.1% during mid-day trading on Thursday . The stock traded as high as $48.12 and last traded at $43.86. Approximately 48,200,863 shares changed hands during mid-day trading, an increase of 871% from the average daily volume of 4,963,921 shares. The stock had previously closed at $30.03.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on MP shares. Canaccord Genuity Group lifted their price objective on MP Materials from $27.00 to $55.00 and gave the company a "buy" rating in a report on Friday. JPMorgan Chase & Co. lowered their price target on MP Materials from $21.00 to $18.00 and set a "neutral" rating on the stock in a research report on Monday, May 12th. Morgan Stanley raised shares of MP Materials from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $23.00 to $34.00 in a report on Thursday, June 5th. BMO Capital Markets boosted their target price on MP Materials from $22.00 to $29.00 and gave the stock a "market perform" rating in a report on Thursday, March 20th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $33.00 price target (up from $32.00) on shares of MP Materials in a report on Monday. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, MP Materials has an average rating of "Moderate Buy" and an average price target of $31.28.

MP Materials Trading Down 0.4%

The business's 50-day simple moving average is $27.31 and its 200-day simple moving average is $24.46. The company has a debt-to-equity ratio of 0.81, a quick ratio of 3.58 and a current ratio of 4.12. The company has a market capitalization of $7.37 billion, a price-to-earnings ratio of -69.32 and a beta of 2.26.

MP Materials (NYSE:MP - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.02). The business had revenue of $60.81 million during the quarter, compared to the consensus estimate of $64.74 million. MP Materials had a negative net margin of 48.41% and a negative return on equity of 9.77%. MP Materials's revenue was up 24.9% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.04) earnings per share. On average, research analysts expect that MP Materials Corp. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO James H. Litinsky sold 199,180 shares of the firm's stock in a transaction on Monday, April 14th. The stock was sold at an average price of $27.08, for a total transaction of $5,393,794.40. Following the sale, the chief executive officer owned 13,643,076 shares of the company's stock, valued at approximately $369,454,498.08. This trade represents a 1.44% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On MP Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Exchange Traded Concepts LLC acquired a new stake in MP Materials in the 2nd quarter valued at approximately $7,479,000. Andrew Hill Investment Advisors Inc. acquired a new stake in shares of MP Materials in the second quarter valued at approximately $296,000. Wealth Enhancement Advisory Services LLC raised its holdings in shares of MP Materials by 2.8% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 12,955 shares of the company's stock valued at $412,000 after purchasing an additional 358 shares during the last quarter. Harbor Investment Advisory LLC lifted its position in shares of MP Materials by 51.0% in the second quarter. Harbor Investment Advisory LLC now owns 1,510 shares of the company's stock worth $50,000 after purchasing an additional 510 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in MP Materials by 36.0% during the first quarter. Goldman Sachs Group Inc. now owns 193,943 shares of the company's stock worth $4,734,000 after purchasing an additional 51,348 shares during the last quarter. 52.55% of the stock is currently owned by institutional investors and hedge funds.

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.