MP Materials (NYSE:MP) Trading Up 3.9% - Should You Buy?

Key Points

• MP Materials' stock price increased by 3.9% during mid-day trading, reaching as high as $100.25, with a notable surge in trading volume.
• Analysts have mixed ratings on MP Materials, with one firm issuing a "Strong Buy," while others have given ratings ranging from "Buy" to "Sell," and a consensus average target price of $74.00.
• Insider trading activity revealed that COO Michael Stuart Rosenthal sold 150,000 shares for approximately $10.8 million, reducing his ownership by 10.46%.

MP Materials Corp. (NYSE:MP - Get Free Report)'s share price was up 3.9% during mid-day trading on Tuesday . The stock traded as high as $100.25 and last traded at $98.78. Approximately 39,775,769 shares were traded during mid-day trading, an increase of 283% from the average daily volume of 10,384,833 shares. The stock had previously closed at $95.06.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on MP shares. BMO Capital Markets started coverage on shares of MP Materials in a report on Thursday, October 9th. They issued a "market perform" rating and a $76.00 target price for the company. Cfra Research upgraded shares of MP Materials to a "moderate buy" rating in a report on Monday, August 11th. Weiss Ratings restated a "sell (d-)" rating on shares of MP Materials in a research note on Wednesday, October 8th. Deutsche Bank Aktiengesellschaft boosted their price target on MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a research note on Thursday, July 17th. Finally, JPMorgan Chase & Co. boosted their price target on MP Materials from $18.00 to $64.00 and gave the stock a "neutral" rating in a research note on Monday, July 21st. 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 assigned a Sell rating to the stock. According to MarketBeat, MP Materials has a consensus rating of "Moderate Buy" and an average target price of $74.00.

MP Materials Stock Performance

The company has a market cap of $17.49 billion, a PE ratio of -156.80 and a beta of 2.32. The company has a debt-to-equity ratio of 0.83, a current ratio of 3.60 and a quick ratio of 3.12. The business has a 50-day moving average of $70.50 and a 200 day moving average of $45.73.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly 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 firm had revenue of $57.39 million during the quarter, compared to analyst estimates of $44.84 million. During the same quarter in the prior year, the firm earned ($0.17) EPS. The business's revenue for the quarter was up 83.6% 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 Buying and Selling

In other MP Materials news, COO Michael Stuart Rosenthal sold 150,000 shares of the company's 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 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 12.60% of the company's stock.

Institutional Investors Weigh In On MP Materials

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caxton Associates LLP purchased a new stake in MP Materials in the 2nd quarter worth approximately $132,238,000. National Bank of Canada FI increased its stake in shares of MP Materials by 19,314.3% in the second quarter. National Bank of Canada FI now owns 2,013,462 shares of the company's stock worth $66,987,000 after purchasing an additional 2,003,091 shares in the last quarter. Driehaus Capital Management LLC purchased a new stake in shares of MP Materials during the first quarter worth about $34,288,000. BNP Paribas Financial Markets grew its holdings in MP Materials by 76.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company's stock valued at $97,200,000 after buying an additional 1,264,243 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in MP Materials by 429.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,550,124 shares of the company's stock valued at $37,839,000 after acquiring an additional 1,257,282 shares in the last quarter. 52.55% of the stock is currently owned by hedge funds and other institutional investors.

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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