MP Materials (NYSE:MP) Trading Down 3.3% - Here's Why

Key Points

• MP Materials' stock price fell by 3.3% to $71.34, with 3.39 million shares traded, significantly lower than its average trading volume of nearly 9.68 million shares.
• Analysts have shown positive sentiment towards MP Materials, with several upgrades; the average target price is around $68.78, indicating a consensus rating of "Moderate Buy."
• In the last earnings report, MP Materials reported a quarterly revenue increase of 83.6% year-over-year, reaching $57.39 million, despite a negative EPS of ($0.13).

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price traded down 3.3% on Wednesday . The company traded as low as $70.87 and last traded at $71.34. 3,389,164 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 9,681,723 shares. The stock had previously closed at $73.77.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on MP shares. Robert W. Baird upped their price target on MP Materials from $52.00 to $69.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 23rd. DA Davidson raised their price target on shares of MP Materials from $32.00 to $82.00 and gave the company a "buy" rating in a report on Tuesday, September 2nd. Morgan Stanley set a $69.00 target price on MP Materials in a research note on Wednesday. Cowen restated a "buy" rating on shares of MP Materials in a research note on Friday, August 8th. Finally, Cfra Research raised shares of MP Materials to a "moderate buy" rating in a research report on Monday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, MP Materials has an average rating of "Moderate Buy" and a consensus target price of $68.78.

MP Materials Stock Down 4.7%

The company has a market capitalization of $12.45 billion, a price-to-earnings ratio of -111.42 and a beta of 2.32. The stock's fifty day simple moving average is $69.20 and its two-hundred day simple moving average is $44.13. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60.

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

Insider Activity at MP Materials

In related news, COO Michael Stuart Rosenthal sold 150,000 shares of the 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 directly owned 1,284,409 shares of the company's stock, valued at approximately $92,503,136.18. This represents a 10.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 12.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC increased its position in MP Materials by 3,618.1% during the first quarter. GAMMA Investing LLC now owns 140,358 shares of the company's stock worth $3,426,000 after acquiring an additional 136,583 shares during the period. NBC Securities Inc. increased its stake 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 acquiring an additional 1,199 shares during the period. Wedmont Private Capital increased its stake in MP Materials by 41.6% during the first quarter. Wedmont Private Capital now owns 14,411 shares of the company's stock valued at $327,000 after acquiring an additional 4,236 shares during the period. CX Institutional bought a new stake in shares of MP Materials during the first quarter valued at approximately $79,000. Finally, Pullen Investment Management LLC increased its holdings in MP Materials by 3.7% in the 1st quarter. Pullen Investment Management LLC now owns 32,185 shares of the company's stock valued at $786,000 after buying an additional 1,159 shares during the period. 52.55% of the stock is owned by institutional investors and hedge funds.

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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