MP Materials (NYSE:MP) Stock Price Down 3% - Here's What Happened

Key Points

• MP Materials shares fell 3% to $55.00, with trading volume below its average. The stock has a market capitalization of approximately $9.8 billion.
• Analyst sentiment remains positive despite several price-target reductions: the stock has a consensus rating of “Buy” and an average price target of $78.21.
• Quarterly revenue rose 89% year over year to $108.49 million and exceeded expectations, while EPS matched estimates at a loss of $0.01. Insiders have been net sellers over the past 90 days, although the COO recently bought 10,000 shares.

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price was down 3% on Thursday . The stock traded as low as $52.42 and last traded at $55.00. 5,499,840 shares were traded during trading, a decline of 17% from the average daily volume of 6,665,430 shares. The stock had previously closed at $56.68.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on MP shares. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a research note on Thursday, July 9th. Canaccord Genuity Group set a $82.00 price objective on MP Materials in a report on Friday, May 8th. Needham & Company LLC reduced their price objective on MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Wedbush boosted their target price on MP Materials from $90.00 to $100.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of MP Materials in a research report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, MP Materials has a consensus rating of "Buy" and an average price target of $78.21.

MP Materials Stock Performance

The firm has a market cap of $9.80 billion, a price-to-earnings ratio of -161.76 and a beta of 1.88. The firm's 50 day moving average is $51.76 and its 200-day moving average is $56.89. The company has a debt-to-equity ratio of 0.48, a quick ratio of 8.56 and a current ratio of 9.51.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.01). The business had revenue of $108.49 million for the quarter, compared to the consensus estimate of $96.89 million. MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%.The firm's revenue was up 89.0% compared to the same quarter last year. During the same period last year, the business earned ($0.13) EPS. Sell-side analysts anticipate that MP Materials Corp. will post -0.07 earnings per share for the current fiscal year.

Insider Buying and Selling at MP Materials

In other news, COO Michael Stuart Rosenthal bought 10,000 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were purchased at an average price of $54.30 per share, for a total transaction of $543,000.00. Following the acquisition, the chief operating officer directly owned 136,622 shares of the company's stock, valued at $7,418,574.60. The trade was a 7.90% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO James H. Litinsky sold 185,167 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $69.14, for a total transaction of $12,802,446.38. Following the sale, the chief executive officer owned 11,620,798 shares of the company's stock, valued at $803,461,973.72. This trade represents a 1.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 585,167 shares of company stock valued at $39,028,272. 8.20% of the stock is owned by insiders.

Hedge Funds Weigh In On MP Materials

Large investors have recently made changes to their positions in the business. Royal Bank of Canada lifted its holdings in shares of MP Materials by 26.5% during the first quarter. Royal Bank of Canada now owns 234,185 shares of the company's stock worth $5,716,000 after buying an additional 49,052 shares during the last quarter. AQR Capital Management LLC bought a new stake in shares of MP Materials in the first quarter valued at approximately $215,000. Integrated Wealth Concepts LLC acquired a new stake in shares of MP Materials in the first quarter worth $219,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of MP Materials by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,793 shares of the company's stock worth $265,000 after acquiring an additional 479 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its position 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 acquiring an additional 51,348 shares during the period. Institutional investors and hedge funds own 52.55% of the company's stock.

MP Materials Company Profile

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.

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