MP Materials (NYSE:MP) Stock Price Up 3.7% - Should You Buy?

Key Points

• MP Materials shares rose 3.7% in mid-day trading, with volume running above average at about 8.8 million shares. The stock traded as high as $71.37 before last changing hands near $72.10.
• Analyst sentiment remains broadly positive, with a consensus rating of “Buy” and a consensus target price of $80.14. Recent calls included buy/outperform ratings and price targets ranging from $69 to $100.
• Recent earnings beat expectations, as MP Materials reported $0.03 EPS versus an expected loss and revenue of $90.65 million, up 49.1% year over year. Despite that, the company still posted negative net margin and return on equity.

MP Materials Corp. (NYSE:MP - Get Free Report) shares rose 3.7% during mid-day trading on Tuesday . The company traded as high as $71.37 and last traded at $72.0990. Approximately 8,802,200 shares were traded during trading, an increase of 27% from the average daily volume of 6,925,243 shares. The stock had previously closed at $69.5520.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MP. DA Davidson reiterated a "buy" rating and issued a $82.00 target price on shares of MP Materials in a report on Wednesday, May 20th. Barclays began coverage on MP Materials in a report on Thursday, May 21st. They issued an "overweight" rating and a $69.00 target price for the company. Wall Street Zen upgraded MP Materials from a "sell" rating to a "hold" rating in a report on Sunday, March 8th. Canaccord Genuity Group set a $82.00 price objective on MP Materials in a research note on Friday, May 8th. Finally, Wedbush raised their price objective on MP Materials from $90.00 to $100.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen 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 "Buy" and a consensus target price of $80.14.

MP Materials Stock Performance

The company has a market cap of $12.84 billion, a PE ratio of -171.66 and a beta of 1.90. The company has a 50-day moving average of $59.69 and a 200-day moving average of $59.54. The company has a quick ratio of 6.58, a current ratio of 7.18 and a debt-to-equity ratio of 0.47.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.03 earnings per share for the quarter, topping analysts' consensus estimates of ($0.01) by $0.04. The company had revenue of $90.65 million for the quarter, compared to the consensus estimate of $74.82 million. MP Materials had a negative net margin of 28.00% and a negative return on equity of 2.27%. The firm's quarterly revenue was up 49.1% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.12) EPS. As a group, analysts anticipate that MP Materials Corp. will post -0.04 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Ryan Corbett sold 46,000 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $60.00, for a total value of $2,760,000.00. Following the transaction, the chief financial officer directly owned 129,017 shares of the company's stock, valued at approximately $7,741,020. The trade was a 26.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Stuart Rosenthal purchased 17,000 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was bought at an average cost of $56.62 per share, for a total transaction of $962,540.00. Following the completion of the acquisition, the chief operating officer directly owned 1,333,673 shares in the company, valued at $75,512,565.26. The trade was a 1.29% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have sold 1,066,000 shares of company stock valued at $69,329,207. 8.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in MP. Costello Asset Management INC boosted its holdings in MP Materials by 15.0% during the 4th quarter. Costello Asset Management INC now owns 1,300 shares of the company's stock valued at $66,000 after acquiring an additional 170 shares during the period. Composition Wealth LLC lifted its holdings in MP Materials by 0.9% in the 4th quarter. Composition Wealth LLC now owns 18,334 shares of the company's stock worth $926,000 after buying an additional 172 shares during the period. IMG Wealth Management Inc. lifted its holdings in MP Materials by 4.7% in the 3rd quarter. IMG Wealth Management Inc. now owns 4,446 shares of the company's stock worth $298,000 after buying an additional 200 shares during the period. ARS Investment Partners LLC lifted its holdings in MP Materials by 1.0% in the 4th quarter. ARS Investment Partners LLC now owns 19,980 shares of the company's stock worth $1,009,000 after buying an additional 200 shares during the period. Finally, Cresset Asset Management LLC lifted its holdings in MP Materials by 1.0% in the 2nd quarter. Cresset Asset Management LLC now owns 21,444 shares of the company's stock worth $713,000 after buying an additional 204 shares during the period. Hedge funds and other institutional investors own 52.55% of the company's stock.

About MP Materials

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.