MP Materials (NYSE:MP) Trading Down 10.6% - Time to Sell?

Key Points

• MP Materials' stock price dropped by 10.6% during mid-day trading, reaching a low of $73.24 before closing at $74.14, significantly lower than its previous close of $82.90.
• Despite the recent decline, analysts maintain a "Moderate Buy" average rating for the stock, with a consensus target price of $77.80, indicating a potential for future growth.
• Insider trading activity was noted as COO Michael Stuart Rosenthal sold 150,000 shares at an average price of $72.02, reducing his ownership by 10.46%.

MP Materials Corp. (NYSE:MP - Get Free Report)'s share price fell 10.6% during mid-day trading on Tuesday . The company traded as low as $73.24 and last traded at $74.14. 17,452,851 shares traded hands during mid-day trading, an increase of 65% from the average session volume of 10,604,479 shares. The stock had previously closed at $82.90.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on MP shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of MP Materials in a report on Wednesday, October 8th. Robert W. Baird increased their target price on MP Materials from $52.00 to $69.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 23rd. Jefferies Financial Group raised MP Materials from a "hold" rating to a "buy" rating and set a $80.00 price target for the company in a research report on Friday, August 1st. Deutsche Bank Aktiengesellschaft raised their price objective on MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a report on Thursday, July 17th. Finally, Benchmark reaffirmed a "buy" rating on shares of MP Materials in a research note on Friday, August 29th. 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 company. According to MarketBeat, MP Materials presently has an average rating of "Moderate Buy" and an average target price of $77.80.

MP Materials Trading Down 10.6%

The firm has a fifty day moving average of $72.14 and a 200-day moving average of $47.92. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60. The stock has a market capitalization of $13.13 billion, a price-to-earnings ratio of -117.68 and a beta of 2.32.

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

Insider Transactions at MP Materials

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of MP Materials stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $72.02, for a total transaction of $10,803,000.00. Following the sale, the chief operating officer owned 1,284,409 shares in the company, valued at $92,503,136.18. This trade represents a 10.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 12.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On MP Materials

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MP. Miracle Mile Advisors LLC boosted its position in MP Materials by 1.0% in the 3rd quarter. Miracle Mile Advisors LLC now owns 18,162 shares of the company's stock valued at $1,218,000 after buying an additional 188 shares during the last quarter. Wedmont Private Capital lifted its stake in shares of MP Materials by 1.7% in the third quarter. Wedmont Private Capital now owns 11,824 shares of the company's stock worth $872,000 after acquiring an additional 195 shares in the last quarter. Cresset Asset Management LLC lifted its stake in shares of MP Materials by 1.0% in the second quarter. Cresset Asset Management LLC now owns 21,444 shares of the company's stock worth $713,000 after acquiring an additional 204 shares in the last quarter. Sound Income Strategies LLC boosted its holdings in 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 purchasing an additional 294 shares during the last quarter. Finally, Harbour Investments Inc. grew its stake in MP Materials by 32.9% during 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 in 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.