MP Materials (NYSE:MP) Shares Up 8.1% - Still a Buy?

Key Points

• MP Materials Corp. shares rose by 8.1% during trading, with a notable trading volume increase of 169% compared to the average session.
• Analysts have varying ratings on the stock, with one analyst giving a Strong Buy, while others issued a mix of Buy and Hold ratings, leading to an average rating of "Moderate Buy".
• The company reported earnings of ($0.13) per share, exceeding estimates, alongside a revenue of $57.39 million, marking an 83.6% increase year-over-year.

MP Materials Corp. (NYSE:MP - Get Free Report) shares shot up 8.1% during trading on Thursday . The stock traded as high as $82.23 and last traded at $76.98. 25,819,231 shares changed hands during mid-day trading, an increase of 169% from the average session volume of 9,589,327 shares. The stock had previously closed at $71.23.

Wall Street Analyst Weigh In

Several research firms recently commented on MP. Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the company an "equal weight" rating in a research report on Thursday, July 31st. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Canaccord Genuity Group boosted their price target on shares of MP Materials from $64.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a research report on Thursday, July 17th. Finally, Daiwa Capital Markets began coverage on shares of MP Materials in a research report on Monday. They set an "outperform" rating and a $80.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $68.33.

MP Materials Stock Performance

The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60. The stock's fifty day moving average price is $67.46 and its 200-day moving average price is $41.18. The company has a market capitalization of $13.63 billion, a P/E ratio of -122.18 and a beta of 2.32.

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

Insiders Place Their Bets

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the stock in a transaction dated 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 directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in MP. Deutsche Bank AG grew its position in shares of MP Materials by 100.9% during the 4th quarter. Deutsche Bank AG now owns 10,682 shares of the company's stock worth $167,000 after purchasing an additional 5,365 shares in the last quarter. Man Group plc acquired a new position in shares of MP Materials during the 4th quarter worth approximately $219,000. Quantinno Capital Management LP acquired a new position in shares of MP Materials during the 4th quarter worth approximately $163,000. Aegis Wealth Management LLC acquired a new position in shares of MP Materials during the 4th quarter worth approximately $156,000. Finally, GAMMA Investing LLC grew its position in shares of MP Materials by 3,618.1% during the 1st quarter. GAMMA Investing LLC now owns 140,358 shares of the company's stock worth $3,426,000 after purchasing an additional 136,583 shares in 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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