MP Materials (NYSE:MP) Shares Up 5.1% - Here's Why

Key Points

• MP Materials Corp. shares increased by 5.1%, reaching a price of $71.08 amid a notable trading volume surge of 38% over the average session.
• Analyst ratings have improved, with eight analysts assigning a Buy rating and a consensus price target of $68.33.
• The company reported quarterly earnings with revenue of $57.39 million, exceeding estimates and reflecting an 83.6% year-over-year increase.

MP Materials Corp. (NYSE:MP - Get Free Report) shot up 5.1% during mid-day trading on Thursday . The company traded as high as $71.74 and last traded at $71.08. 13,331,018 shares changed hands during mid-day trading, an increase of 38% from the average session volume of 9,659,269 shares. The stock had previously closed at $67.63.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on MP. Benchmark restated a "buy" rating on shares of MP Materials in a report on Friday, August 29th. Morgan Stanley set a $65.00 price objective on MP Materials and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Daiwa Capital Markets began coverage on MP Materials in a research note on Monday, September 22nd. They issued an "outperform" rating and a $80.00 price objective for the company. Wall Street Zen raised MP Materials from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Finally, Jefferies Financial Group raised MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price objective for the company in a research note on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $68.33.

MP Materials Stock Performance

The company has a market cap of $12.59 billion, a P/E ratio of -112.83 and a beta of 2.32. The firm has a 50 day moving average price of $68.35 and a 200-day moving average price of $42.73. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60.

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, topping the consensus estimate of ($0.16) by $0.03. The company had revenue of $57.39 million during the quarter, compared to the consensus estimate of $44.84 million. MP Materials had a negative return on equity of 9.34% and a negative net margin of 41.87%.The firm's revenue was up 83.6% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.17) EPS. On average, research analysts predict that MP Materials Corp. will post -0.19 EPS for the current year.

Insider Activity

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

Hedge Funds Weigh In On MP Materials

Large investors have recently made changes to their positions in the business. Ballentine Partners LLC acquired a new position in shares of MP Materials during the 2nd quarter worth about $241,000. GAMMA Investing LLC lifted its position in shares of MP Materials by 52.3% during the 1st quarter. GAMMA Investing LLC now owns 5,750 shares of the company's stock worth $140,000 after purchasing an additional 1,975 shares during the last quarter. Strs Ohio acquired a new position in shares of MP Materials during the 1st quarter worth about $687,000. Exchange Traded Concepts LLC acquired a new position in shares of MP Materials during the 2nd quarter worth about $7,479,000. Finally, Amundi lifted its position in shares of MP Materials by 561.2% during the 1st quarter. Amundi now owns 80,662 shares of the company's stock worth $2,002,000 after purchasing an additional 68,462 shares during the last quarter. Institutional investors and hedge funds 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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