MP Materials (NYSE:MP) Stock Price Down 5.6% - Here's What Happened

Key Points

• MP Materials Corp.'s stock price experienced a 5.6% drop during trading, falling to $67.16 from a previous close of $71.14, with a significant decrease in daily trading volume.
• Analysts have provided mixed ratings, with six giving a "Buy" rating and a consensus target price of $66.88, while some raised their price targets significantly, indicating strong market interest.
• The company reported a quarterly revenue increase of 83.6% year-over-year, with earnings per share exceeding analysts' expectations, reflecting a positive financial performance despite earlier losses.

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price dropped 5.6% during trading on Tuesday . The stock traded as low as $66.64 and last traded at $67.16. Approximately 3,503,925 shares were traded during trading, a decline of 62% from the average daily volume of 9,268,329 shares. The stock had previously closed at $71.14.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. Benchmark restated a "buy" rating on shares of MP Materials in a report on Friday. Morgan Stanley set a $65.00 target price on MP Materials and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. DA Davidson raised their price target on MP Materials from $32.00 to $82.00 and gave the company a "buy" rating in a research report on Tuesday. Wall Street Zen raised MP Materials from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Finally, Canaccord Genuity Group increased their price objective on shares of MP Materials from $64.00 to $77.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Six equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $66.88.

MP Materials Price Performance

The stock has a market capitalization of $11.81 billion, a PE ratio of -105.86 and a beta of 2.32. The company has a current ratio of 3.60, a quick ratio of 3.12 and a debt-to-equity ratio of 0.83. The company's 50 day simple moving average is $57.64 and its 200 day simple moving average is $36.29.

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

Insider Transactions at MP Materials

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the firm's stock in a transaction dated Friday, August 29th. The stock was 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 of the company's stock, valued at approximately $92,503,136.18. This trade represents a 10.46% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 12.60% of the company's stock.

Institutional Trading of MP Materials

Institutional investors and hedge funds have recently made changes to their positions in the company. Highline Wealth Partners LLC purchased a new stake in MP Materials during the second quarter valued at about $25,000. AdvisorNet Financial Inc lifted its position in MP Materials by 168.7% during the second quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock valued at $27,000 after buying an additional 506 shares in the last quarter. Spire Wealth Management grew its stake in MP Materials by 181.3% during the second quarter. Spire Wealth Management now owns 1,010 shares of the company's stock worth $34,000 after buying an additional 651 shares during the period. NBC Securities Inc. increased its position in shares of MP Materials by 119,900.0% in the first quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after acquiring an additional 1,199 shares in the last quarter. Finally, Harbour Investments Inc. increased its holdings in MP Materials by 32.9% in the 2nd quarter. Harbour Investments Inc. now owns 1,220 shares of the company's stock valued at $41,000 after purchasing an additional 302 shares in 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.

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