MP Materials (NYSE:MP) Trading Down 9% - Time to Sell?

Key Points

• MP Materials (NYSE:MP) shares fell by 9% during trading, reaching a low of $86.50 before closing at $89.75.
• Analysts maintain a consensus rating of "Moderate Buy" for MP Materials, with price targets ranging from $64.00 to $80.00.
• Institutional investors and hedge funds hold 52.55% of MP Materials stock, indicating strong institutional interest in the company.

MP Materials Corp. (NYSE:MP - Get Free Report) shares traded down 9% during mid-day trading on Wednesday . The stock traded as low as $86.50 and last traded at $89.75. 29,739,377 shares traded hands during mid-day trading, an increase of 184% from the average session volume of 10,484,445 shares. The stock had previously closed at $98.65.

Wall Street Analysts Forecast Growth

MP has been the subject of a number of recent analyst reports. Cfra Research raised shares of MP Materials to a "moderate buy" rating in a research report on Monday, August 11th. BMO Capital Markets assumed coverage on MP Materials in a report on Thursday, October 9th. They set a "market perform" rating and a $76.00 price objective on the stock. 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 note on Friday, August 1st. JPMorgan Chase & Co. boosted their target price on MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a report on Monday, July 21st. Finally, Morgan Stanley set a $69.00 price target on MP Materials in a report on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, MP Materials has an average rating of "Moderate Buy" and a consensus price target of $77.80.

MP Materials Stock Performance

The firm has a fifty day moving average of $71.11 and a 200-day moving average of $46.09. The firm has a market cap of $15.89 billion, a P/E ratio of -142.46 and a beta of 2.32. 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 issued its earnings results on Thursday, August 7th. The company reported ($0.13) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $57.39 million for the quarter, compared to analysts' expectations of $44.84 million. During the same quarter last year, the business earned ($0.17) earnings per share. The company's revenue was up 83.6% compared to the same quarter last year. Research analysts predict that MP Materials Corp. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at MP Materials

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MP. Ballentine Partners LLC bought a new stake in shares of MP Materials during the 2nd quarter worth $241,000. GAMMA Investing LLC grew its stake in MP Materials by 52.3% during the first quarter. GAMMA Investing LLC now owns 5,750 shares of the company's stock worth $140,000 after purchasing an additional 1,975 shares during the period. Strs Ohio acquired a new stake in MP Materials during the first quarter worth approximately $687,000. Exchange Traded Concepts LLC acquired a new stake in MP Materials in the second quarter valued at approximately $7,479,000. Finally, Amundi grew its stake in MP Materials by 561.2% in the first quarter. Amundi now owns 80,662 shares of the company's stock valued at $2,002,000 after acquiring an additional 68,462 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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