MP Materials (NYSE:MP) Shares Down 2.3% - Here's Why

Key Points

• MP Materials shares fell 2.3% to about $45.40, with trading volume slightly above average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $76.29, despite recent target cuts and a “strong sell” downgrade from Zacks Research.
• Second-quarter revenue rose 89% year over year to $108.49 million, beating estimates, though the company posted a $0.01-per-share loss and continues to report negative margins. Institutional investors own 52.55% of the stock.

MP Materials Corp. (NYSE:MP - Get Free Report) shares traded down 2.3% on Tuesday. The stock traded as low as $44.75 and last traded at $45.3950. Approximately 6,851,882 shares changed hands during trading, an increase of 6% from the average session volume of 6,465,823 shares. The stock had previously closed at $46.45.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Zacks Research cut shares of MP Materials from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Freedom Broker started coverage on shares of MP Materials in a report on Wednesday, September 16th. They set a "hold" rating and a $57.00 target price for the company. Deutsche Bank Aktiengesellschaft reduced their price target on MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. Needham & Company LLC decreased their price objective on shares of MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of MP Materials in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $76.29.

MP Materials Price Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 8.56 and a current ratio of 9.51. The firm has a market capitalization of $8.08 billion, a P/E ratio of -133.51 and a beta of 1.94. The firm has a 50-day moving average of $51.13 and a 200-day moving average of $55.61.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.01) EPS for the quarter, hitting the consensus estimate of ($0.01). MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%.The company had revenue of $108.49 million during the quarter, compared to the consensus estimate of $96.89 million. During the same period last year, the company earned ($0.13) EPS. MP Materials's revenue for the quarter was up 89.0% on a year-over-year basis. As a group, analysts predict that MP Materials Corp. will post -0.12 EPS for the current year.

Institutional Investors Weigh In On MP Materials

Several hedge funds and other institutional investors have recently made changes to their positions in MP. EMC Capital Management purchased a new stake in shares of MP Materials in the 4th quarter worth $25,000. REAP Financial Group LLC bought a new stake in shares of MP Materials during the fourth quarter valued at approximately $26,000. Toth Financial Advisory Corp boosted its position in shares of MP Materials by 73.3% during the second quarter. Toth Financial Advisory Corp now owns 520 shares of the company's stock worth $29,000 after acquiring an additional 220 shares during the last quarter. University of Texas Texas AM Investment Management Co. bought a new position in shares of MP Materials during the fourth quarter worth $36,000. Finally, Markowski Investments purchased a new position in MP Materials during the second quarter valued at $43,000. Hedge funds and other institutional investors own 52.55% of the company's stock.

MP Materials Company Profile

MP Materials Corp. is a rare earth materials company that owns and operates the Mountain Pass rare earth mine and processing facility in California. The site is one of the largest rare earth production facilities in the Western Hemisphere and produces rare earth concentrate, with an emphasis on neodymium-praseodymium (NdPr), materials used in high-performance permanent magnets.

The company is expanding its operations beyond mining and concentrate production into separated rare earth products and magnet manufacturing.

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