MP Materials (NYSE:MP) Stock Price Down 1.5% - Time to Sell?

Key Points

• MP Materials Corp. shares decreased by 1.5%, closing at $62.21, with a significant drop in trading volume, declining by 69% from the average session.
• Several research firms increased their price targets for MP Materials, with DA Davidson raising its target from $32 to $82 and the stock currently holding a consensus rating of "Moderate Buy" and an average target price of $66.88.
• Despite a quarterly loss of ($0.13) EPS, MP Materials reported a revenue increase of 83.6% year-over-year, totaling $57.39 million, surpassing estimates.

MP Materials Corp. (NYSE:MP - Get Free Report) shares traded down 1.5% on Wednesday . The stock traded as low as $61.88 and last traded at $62.21. 2,812,472 shares changed hands during mid-day trading, a decline of 69% from the average session volume of 9,216,237 shares. The stock had previously closed at $63.15.

Analysts Set New Price Targets

A number of research firms recently commented on MP. DA Davidson raised their price target on shares of MP Materials from $32.00 to $82.00 and gave the stock a "buy" rating in a research report on Tuesday, September 2nd. Wall Street Zen raised shares of MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Deutsche Bank Aktiengesellschaft raised 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. Canaccord Genuity Group raised 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. Finally, 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 report on Monday, July 21st. Six investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $66.88.

MP Materials Trading Down 1.7%

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 has a market capitalization of $11.00 billion, a P/E ratio of -98.57 and a beta of 2.32. The firm's fifty day simple moving average is $61.30 and its 200 day simple moving average is $37.91.

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

Insider Buying and Selling at MP Materials

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of the firm's stock in a transaction that occurred on 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 sale, the chief operating officer directly owned 1,284,409 shares in the company, valued at approximately $92,503,136.18. This trade represents a 10.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 12.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Thrivent Financial for Lutherans raised its holdings in MP Materials by 6.2% during the 2nd quarter. Thrivent Financial for Lutherans now owns 94,251 shares of the company's stock worth $3,136,000 after purchasing an additional 5,541 shares during the last quarter. Newbridge Financial Services Group Inc. raised its holdings in MP Materials by 40.0% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,400 shares of the company's stock worth $47,000 after purchasing an additional 400 shares during the last quarter. Marex Group plc bought a new position in MP Materials during the 2nd quarter worth approximately $729,000. MRP Capital Investments LLC raised its holdings in MP Materials by 44.2% during the 2nd quarter. MRP Capital Investments LLC now owns 41,125 shares of the company's stock worth $1,368,000 after purchasing an additional 12,600 shares during the last quarter. Finally, State of Wyoming bought a new position in MP Materials during the 2nd quarter worth approximately $54,000. 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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