MP Materials (NYSE:MP) Trading Down 6.1% - Should You Sell?

Key Points

• MP Materials Corp. experienced a 6.1% decline in stock price, trading as low as $67.07, with a total volume of approximately 5.1 million shares, significantly lower than its average volume.
• Analysts have mixed ratings for MP Materials; while some have set a price target as low as $65, others have increased their targets up to $80, indicating a potentially volatile outlook.
• In the most recent quarter, MP Materials reported earnings of ($0.13) per share, exceeding expectations, and a significant revenue increase of 83.6% year-over-year, reaching $57.39 million.

MP Materials Corp. (NYSE:MP - Get Free Report) was down 6.1% during trading on Tuesday . The company traded as low as $67.07 and last traded at $67.84. Approximately 5,122,748 shares changed hands during trading, a decline of 45% from the average daily volume of 9,237,628 shares. The stock had previously closed at $72.21.

Analyst Ratings Changes

A number of equities research analysts have recently commented on MP shares. Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Jefferies Financial Group raised shares of MP Materials from a "hold" rating to a "buy" rating and set a $80.00 target price on the stock in a research note on Friday, August 1st. Robert W. Baird boosted their price target on shares of MP Materials from $52.00 to $69.00 and gave the company an "outperform" rating in a research report on Wednesday, July 23rd. Canaccord Genuity Group boosted their price target on shares of MP Materials from $64.00 to $77.00 and gave the company a "buy" rating in a research report 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. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $60.63.

MP Materials Price Performance

The firm has a market capitalization of $12.05 billion, a price-to-earnings ratio of -108.08 and a beta of 2.30. The company has a fifty day moving average price of $50.21 and a two-hundred day moving average price of $33.06. The company has a quick ratio of 3.12, a current ratio of 3.60 and a debt-to-equity ratio of 0.83.

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MP. Highline Wealth Partners LLC purchased a new stake in MP Materials during the 2nd quarter worth approximately $25,000. AdvisorNet Financial Inc increased its holdings in shares of MP Materials by 168.7% in the 2nd quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock valued at $27,000 after acquiring an additional 506 shares during the last quarter. NBC Securities Inc. increased its holdings in shares of MP Materials by 119,900.0% in the 1st 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 last quarter. MAI Capital Management increased its holdings in shares of MP Materials by 132.7% in the 1st quarter. MAI Capital Management now owns 1,403 shares of the company's stock valued at $34,000 after acquiring an additional 800 shares during the last quarter. Finally, Spire Wealth Management increased its holdings in shares of MP Materials by 181.3% in the 2nd quarter. Spire Wealth Management now owns 1,010 shares of the company's stock valued at $34,000 after acquiring an additional 651 shares during 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.

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