MP Materials (NYSE:MP) Trading Up 4.3% - Here's Why

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price shot up 4.3% during trading on Wednesday . The stock traded as high as $19.60 and last traded at $19.59. 2,165,463 shares were traded during mid-day trading, a decline of 42% from the average session volume of 3,746,892 shares. The stock had previously closed at $18.77.

Analyst Ratings Changes

Several research firms have recently commented on MP. BMO Capital Markets boosted their price target on shares of MP Materials from $22.00 to $29.00 and gave the company a "market perform" rating in a report on Thursday, March 20th. JPMorgan Chase & Co. reduced their price target on shares of MP Materials from $21.00 to $18.00 and set a "neutral" rating for the company in a report on Monday, May 12th. Finally, DA Davidson boosted their price target on shares of MP Materials from $25.00 to $32.00 and gave the company a "buy" rating in a report on Wednesday, March 19th. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat.com, MP Materials currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.61.

MP Materials Price Performance

The company has a debt-to-equity ratio of 0.88, a quick ratio of 6.13 and a current ratio of 6.93. The firm has a market cap of $3.57 billion, a price-to-earnings ratio of -37.03 and a beta of 2.24. The stock's 50 day simple moving average is $23.26 and its 200-day simple moving average is $22.01.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.02). MP Materials had a negative net margin of 32.09% and a negative return on equity of 8.44%. The company had revenue of $60.81 million for the quarter, compared to analyst estimates of $64.74 million. During the same quarter in the previous year, the company posted ($0.04) EPS. The company's revenue for the quarter was up 24.9% compared to the same quarter last year. Equities research analysts anticipate that MP Materials Corp. will post -0.19 EPS for the current fiscal year.

Insider Activity

In other news, CFO Ryan Corbett sold 60,000 shares of the company's stock in a transaction on Friday, March 14th. The shares were sold at an average price of $25.51, for a total value of $1,530,600.00. Following the sale, the chief financial officer now directly owns 230,100 shares of the company's stock, valued at $5,869,851. This represents a 20.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO James H. Litinsky sold 489,918 shares of the company's stock in a transaction on Monday, March 17th. The shares were sold at an average price of $26.77, for a total transaction of $13,115,104.86. Following the completion of the sale, the chief executive officer now directly owns 15,153,158 shares in the company, valued at $405,650,039.66. This trade represents a 3.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 943,792 shares of company stock valued at $25,286,567 in the last ninety days. Insiders own 9.50% of the company's stock.

Institutional Trading of MP Materials

Hedge funds have recently added to or reduced their stakes in the company. NBC Securities Inc. grew its position in MP Materials by 119,900.0% during the first quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock valued at $29,000 after buying an additional 1,199 shares during the period. MAI Capital Management grew its position 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 period. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in MP Materials during the first quarter valued at $35,000. Banque Cantonale Vaudoise acquired a new stake in MP Materials during the first quarter valued at $35,000. Finally, Quadrant Capital Group LLC grew its position in MP Materials by 40.3% during the fourth quarter. Quadrant Capital Group LLC now owns 2,441 shares of the company's stock valued at $38,000 after buying an additional 701 shares during the period. 52.55% of the stock is owned by hedge funds and other institutional investors.

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.