MP Materials (NYSE:MP) Stock Price Down 7.8% - Time to Sell?

Key Points

• MP Materials Corp. (NYSE:MP) saw its stock price drop by 7.8%, closing at $90.97 after trading as low as $90.52.
• A multitude of brokerages have issued varied ratings on MP Materials, with target prices ranging from $32.00 to $82.00, indicating a generally positive outlook despite the recent stock decline.
• Despite the stock's performance, the company reported a 83.6% year-over-year increase in quarterly revenue, exceeding analysts' expectations.

MP Materials Corp. (NYSE:MP - Get Free Report) shares fell 7.8% on Wednesday . The stock traded as low as $90.52 and last traded at $90.97. 6,060,473 shares traded hands during trading, a decline of 41% from the average session volume of 10,353,503 shares. The stock had previously closed at $98.65.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on MP. DA Davidson increased their target price on MP Materials from $32.00 to $82.00 and gave the stock a "buy" rating in a report on Tuesday, September 2nd. Morgan Stanley set a $69.00 target price on MP Materials in a research report on Wednesday, October 8th. Cfra Research raised MP Materials to a "moderate buy" rating in a research report on Monday, August 11th. Cowen reissued a "buy" rating on shares of MP Materials in a report on Friday, August 8th. Finally, Jefferies Financial Group raised MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price objective for the company in a report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, MP Materials has an average rating of "Moderate Buy" and a consensus target price of $77.80.

MP Materials Stock Performance

The company has a market cap of $15.69 billion, a PE ratio of -140.88 and a beta of 2.32. The company has a debt-to-equity ratio of 0.83, a current ratio of 3.60 and a quick ratio of 3.12. The business has a 50-day moving average of $71.11 and a 200 day moving average of $46.09.

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

Insider Buying and Selling

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the company'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 completion of the sale, the chief operating officer owned 1,284,409 shares in the company, valued at $92,503,136.18. This represents a 10.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 12.60% of the stock is currently owned by insiders.

Institutional Trading of MP Materials

Several institutional investors have recently made changes to their positions in MP. Highline Wealth Partners LLC purchased a new stake in shares of MP Materials during the second quarter worth about $25,000. Sound Income Strategies LLC grew its position in shares of MP Materials by 420.0% during the third quarter. Sound Income Strategies LLC now owns 364 shares of the company's stock worth $26,000 after purchasing an additional 294 shares in the last quarter. AdvisorNet Financial Inc boosted its stake 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 during the last quarter. MAI Capital Management boosted its stake in MP Materials by 132.7% during the first quarter. MAI Capital Management now owns 1,403 shares of the company's stock valued at $34,000 after buying an additional 800 shares during the last quarter. Finally, Spire Wealth Management boosted 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 valued at $34,000 after buying an additional 651 shares during the last quarter. Hedge funds and other institutional investors 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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