MP Materials (NYSE:MP) Stock Price Down 6.1% - Here's Why

Key Points

• Shares of MP Materials fell 6.1% to $53.21 during Monday trading, with volume of 6.52 million shares (about 39% below average) and the stock trading below its 50‑day ($65.50) and 200‑day ($58.49) moving averages.
• Analysts hold a consensus "Moderate Buy" on MP with an average price target of $78.91, following several recent upgrades from firms like BMO, JPMorgan and Deutsche Bank.
• Insiders have been heavy sellers recently — including CEO and CFO disposals — totaling 691,557 shares (≈$43.5M) over the past three months, though insiders still own 12.6% of the company.

Shares of MP Materials Corp. (NYSE:MP - Get Free Report) traded down 6.1% during mid-day trading on Monday . The company traded as low as $53.04 and last traded at $53.2120. 6,523,127 shares changed hands during trading, a decline of 39% from the average session volume of 10,648,597 shares. The stock had previously closed at $56.66.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. BMO Capital Markets upgraded MP Materials from a "market perform" rating to an "outperform" rating and cut their price objective for the company from $76.00 to $75.00 in a research report on Monday, November 24th. JPMorgan Chase & Co. raised shares of MP Materials from a "neutral" rating to an "overweight" rating and cut their price target for the stock from $75.00 to $74.00 in a report on Friday, November 14th. Deutsche Bank Aktiengesellschaft upgraded shares of MP Materials from a "hold" rating to a "buy" rating and upped their price objective for the stock from $68.00 to $71.00 in a research report on Monday, November 10th. Daiwa America upgraded shares of MP Materials to a "strong-buy" rating in a research report on Monday, September 22nd. Finally, Daiwa Capital Markets assumed coverage on shares of MP Materials in a report on Monday, September 22nd. They issued an "outperform" rating and a $80.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $78.91.

MP Materials Stock Down 6.1%

The company has a debt-to-equity ratio of 0.47, a current ratio of 8.05 and a quick ratio of 7.51. The company has a market capitalization of $9.43 billion, a PE ratio of -74.95 and a beta of 1.70. The business's 50 day simple moving average is $65.50 and its 200 day simple moving average is $58.49.

MP Materials (NYSE:MP - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.15) by $0.05. MP Materials had a negative net margin of 50.55% and a negative return on equity of 7.69%. The business had revenue of $53.55 million during the quarter, compared to the consensus estimate of $49.72 million. During the same quarter last year, the firm earned ($0.12) EPS. The business's revenue was down 14.9% compared to the same quarter last year. As a group, analysts anticipate that MP Materials Corp. will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at MP Materials

In related news, CFO Ryan Corbett sold 38,146 shares of the stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $60.00, for a total transaction of $2,288,760.00. Following the completion of the transaction, the chief financial officer owned 156,666 shares of the company's stock, valued at approximately $9,399,960. This trade represents a 19.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO James H. Litinsky sold 385,000 shares of the company's stock in a transaction on Friday, December 5th. The stock was sold at an average price of $62.94, for a total value of $24,231,900.00. Following the transaction, the chief executive officer owned 13,105,965 shares in the company, valued at $824,889,437.10. This trade represents a 2.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 691,557 shares of company stock valued at $43,538,586 over the last three months. Corporate insiders own 12.60% of the company's stock.

Hedge Funds Weigh In On MP Materials

Institutional investors have recently modified their holdings of the business. Sound Income Strategies LLC raised its stake in shares of MP Materials by 420.0% in the third quarter. Sound Income Strategies LLC now owns 364 shares of the company's stock valued at $26,000 after acquiring an additional 294 shares in the last quarter. Grove Bank & Trust acquired a new position in MP Materials during the 3rd quarter worth $34,000. SJS Investment Consulting Inc. increased its holdings in MP Materials by 4,600.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 564 shares of the company's stock worth $38,000 after purchasing an additional 552 shares during the period. Hilltop National Bank increased its holdings in MP Materials by 500.0% during the 3rd quarter. Hilltop National Bank now owns 600 shares of the company's stock worth $40,000 after purchasing an additional 500 shares during the period. Finally, Montag A & Associates Inc. raised its position in MP Materials by 106.2% in the 3rd quarter. Montag A & Associates Inc. now owns 635 shares of the company's stock valued at $43,000 after purchasing an additional 327 shares in the last quarter. Institutional investors and hedge funds own 52.55% of the company's stock.

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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