MP Materials (NYSE:MP) Shares Down 4.7% - Here's Why

Key Points

• MP Materials shares fell 4.7% to $56.26 in midday trading, with volume below its average. The company has a market capitalization of about $10.02 billion and elevated volatility, reflected by a beta of 1.88.
• Analysts maintain a generally positive outlook despite mixed revisions, with the stock holding a “Moderate Buy” consensus rating and an average price target of $78.21. Needham and Deutsche Bank recently lowered their targets to $73 and $61, respectively.
• MP Materials matched quarterly EPS expectations at a loss of $0.01 while revenue reached $108.49 million, beating estimates and rising 89% year over year. However, the company remains unprofitable, with a negative net margin of 19.85%.

MP Materials Corp. (NYSE:MP - Get Free Report) shares traded down 4.7% on Friday . The stock traded as low as $55.64 and last traded at $56.26. Approximately 4,867,744 shares were traded during mid-day trading, a decline of 27% from the average daily volume of 6,651,757 shares. The stock had previously closed at $59.03.

Wall Street Analysts Forecast Growth

MP has been the subject of several research analyst reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of MP Materials in a research note on Friday, July 17th. Wall Street Zen downgraded shares of MP Materials from a "hold" rating to a "sell" rating in a report on Saturday, July 25th. Needham & Company LLC cut their price objective on shares of MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft reduced their target price on shares of MP Materials from $70.00 to $61.00 and set a "buy" rating for the company in a research note on Thursday, July 9th. Finally, Canaccord Genuity Group set a $82.00 price target on MP Materials in a research note on Friday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, MP Materials currently has an average rating of "Moderate Buy" and an average target price of $78.21.

MP Materials Stock Performance

The firm has a market capitalization of $10.02 billion, a price-to-earnings ratio of -165.47 and a beta of 1.88. The firm's 50-day moving average price is $51.75 and its two-hundred day moving average price is $56.82. The company has a debt-to-equity ratio of 0.48, a quick ratio of 8.56 and a current ratio of 9.51.

MP Materials (NYSE:MP - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.01). The firm had revenue of $108.49 million during the quarter, compared to analyst estimates of $96.89 million. MP Materials had a negative net margin of 19.85% and a negative return on equity of 1.21%. The company's quarterly revenue was up 89.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.13) earnings per share. Sell-side analysts predict that MP Materials Corp. will post -0.12 earnings per share for the current year.

Insider Buying and Selling at MP Materials

In other MP Materials news, CEO James H. Litinsky sold 185,167 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $69.14, for a total transaction of $12,802,446.38. Following the sale, the chief executive officer owned 11,620,798 shares of the company's stock, valued at $803,461,973.72. This represents a 1.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Stuart Rosenthal bought 10,000 shares of the company's stock in a transaction dated Tuesday, June 9th. The shares were purchased at an average price of $54.30 per share, with a total value of $543,000.00. Following the transaction, the chief operating officer owned 136,622 shares of the company's stock, valued at $7,418,574.60. The trade was a 7.90% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 8.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On MP Materials

Hedge funds and other institutional investors have recently bought and sold shares of the business. Costello Asset Management INC boosted its position in shares of MP Materials by 15.0% in the 4th quarter. Costello Asset Management INC now owns 1,300 shares of the company's stock worth $66,000 after purchasing an additional 170 shares during the last quarter. Composition Wealth LLC increased its stake in shares of MP Materials by 0.9% in the 4th quarter. Composition Wealth LLC now owns 18,334 shares of the company's stock valued at $926,000 after acquiring an additional 172 shares during the last quarter. ARS Investment Partners LLC boosted its stake in MP Materials by 1.0% during the 4th quarter. ARS Investment Partners LLC now owns 19,980 shares of the company's stock worth $1,009,000 after acquiring an additional 200 shares during the last quarter. Cresset Asset Management LLC grew its holdings in MP Materials by 1.0% during the second quarter. Cresset Asset Management LLC now owns 21,444 shares of the company's stock valued at $713,000 after purchasing an additional 204 shares during the period. Finally, Kestra Private Wealth Services LLC raised its holdings in MP Materials by 1.8% in the fourth quarter. Kestra Private Wealth Services LLC now owns 12,232 shares of the company's stock worth $618,000 after purchasing an additional 212 shares during the period. 52.55% of the stock is owned by institutional investors.

MP Materials Company Profile

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.

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