MP Materials (NYSE:MP) Trading Up 8.7% - What's Next?

Key Points

• MP Materials Corp. stock rose by 8.7%, reaching a last trade price of $78.59 after significant trading volume, which increased by 405% compared to the average session.
• Analysts have generally upgraded the stock, with several institutions changing their ratings to "buy" or "hold," and the consensus price target has risen to $74.00.
• Despite reporting an **EPS of ($0.13)** that beat estimates, the company showed a negative net margin of 41.87%, although revenue increased by **83.6%** compared to the previous year.

MP Materials Corp. (NYSE:MP - Get Free Report) traded up 8.7% during mid-day trading on Friday . The company traded as high as $84.92 and last traded at $78.59. 50,555,882 shares were traded during trading, an increase of 405% from the average session volume of 10,018,394 shares. The stock had previously closed at $72.29.

Analyst Upgrades and Downgrades

Several analysts have issued reports on MP shares. Wall Street Zen raised MP Materials from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Canaccord Genuity Group raised their price objective on MP Materials from $64.00 to $77.00 and gave the company a "buy" rating in a research report on Friday, August 8th. 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. Robert W. Baird raised their price target on shares of MP Materials from $52.00 to $69.00 and gave the company an "outperform" rating in a report on Wednesday, July 23rd. Finally, BMO Capital Markets began coverage on shares of MP Materials in a research note on Thursday. They issued a "market perform" rating and a $76.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $74.00.

MP Materials Stock Up 8.7%

The business's 50 day moving average is $69.62 and its 200 day moving average is $44.62. The company has a market capitalization of $13.92 billion, a price-to-earnings ratio of -124.75 and a beta of 2.32. 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 posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.13) EPS for the quarter, topping 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 the consensus estimate of $44.84 million. During the same period in the previous year, the firm posted ($0.17) earnings per share. The business's revenue for the quarter was up 83.6% compared to the same quarter last year. Sell-side analysts anticipate that MP Materials Corp. will post -0.19 earnings per share for the current year.

Insider Buying and Selling

In other MP Materials 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 completion of the sale, the chief operating officer directly owned 1,284,409 shares in the company, valued at approximately $92,503,136.18. The trade was a 10.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MP. Highline Wealth Partners LLC acquired a new position in shares of MP Materials in the 2nd quarter valued at about $25,000. Sound Income Strategies LLC lifted 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 acquiring an additional 294 shares during the period. AdvisorNet Financial Inc lifted its stake 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 purchasing an additional 506 shares during the period. NBC Securities Inc. raised its position in shares of MP Materials by 119,900.0% in the first quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after acquiring an additional 1,199 shares during the period. Finally, MAI Capital Management raised its position in shares of MP Materials by 132.7% in the first quarter. MAI Capital Management now owns 1,403 shares of the company's stock worth $34,000 after acquiring an additional 800 shares during the period. 52.55% of the stock is currently 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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