MP Materials (NYSE:MP) Stock Price Up 6.4% After Better-Than-Expected Earnings

Key Points

• MP Materials Corp. experienced a stock price increase of 6.4% following a better-than-expected earnings report, beating the EPS consensus estimate by $0.03.
• The company recorded revenue of $57.39 million for the quarter, significantly surpassing the consensus estimate of $44.84 million and marking an 83.6% year-over-year increase.
• Wall Street analysts have issued buy ratings for MP Materials, with target prices ranging from $64.00 to $80.00, reflecting positive sentiment regarding the company's future growth prospects.

MP Materials Corp. (NYSE:MP - Get Free Report) was up 6.4% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $79.36 and last traded at $75.64. Approximately 12,275,017 shares traded hands during mid-day trading, an increase of 36% from the average daily volume of 9,020,296 shares. The stock had previously closed at $71.07.

The company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.03. MP Materials had a negative return on equity of 9.77% and a negative net margin of 48.41%. The business had revenue of $57.39 million for the quarter, compared to the consensus estimate of $44.84 million. During the same period in the prior year, the business earned ($0.17) earnings per share. The business's revenue was up 83.6% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Cowen reaffirmed a "buy" rating on shares of MP Materials in a report on Friday. Robert W. Baird raised their target price on MP Materials from $52.00 to $69.00 and gave the company an "outperform" rating in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. boosted their price target on shares of MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a research report on Monday, July 21st. Morgan Stanley set a $65.00 price target on shares of MP Materials and gave the company an "equal weight" rating in a report on Thursday, July 31st. Finally, Jefferies Financial Group raised shares of MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price objective on the stock in a research note on Friday, August 1st. Five analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $57.88.

Institutional Trading of MP Materials

Several institutional investors have recently made changes to their positions in the business. Highline Wealth Partners LLC acquired a new position in MP Materials during the 2nd quarter worth about $25,000. AdvisorNet Financial Inc lifted its holdings in MP Materials by 168.7% in 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 period. Spire Wealth Management lifted its holdings in MP Materials by 181.3% in 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 period. NBC Securities Inc. grew its holdings in MP Materials by 119,900.0% during the 1st quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after acquiring an additional 1,199 shares during the period. Finally, Harbour Investments Inc. lifted its stake in shares of 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 during the period. 52.55% of the stock is currently owned by institutional investors and hedge funds.

MP Materials Trading Up 3.8%

The business has a 50 day moving average of $43.15 and a 200 day moving average of $30.33. The firm has a market capitalization of $12.05 billion, a price-to-earnings ratio of -114.36 and a beta of 2.30. The company has a debt-to-equity ratio of 0.81, a current ratio of 4.12 and a quick ratio of 3.58.

About MP Materials

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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