MP Materials (NYSE:MP) Shares Down 4.8% Following Analyst Downgrade

Key Points

• MP Materials shares fell 4.8% after Morgan Stanley cut its price target from $73 to $66, while maintaining an overweight rating. The stock traded near $46.22, below its prior close of $48.53.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $75.00, despite several firms recently lowering their targets.
• The company reported quarterly revenue of $108.49 million, up 89% year over year and above estimates, but posted a $0.01 per-share loss and a negative net margin. Institutional investors own 52.55% of the stock.

Shares of MP Materials Corp. (NYSE:MP - Get Free Report) were down 4.8% on Wednesday after Morgan Stanley lowered their price target on the stock from $73.00 to $66.00. Morgan Stanley currently has an overweight rating on the stock. MP Materials traded as low as $45.58 and last traded at $46.2170. 5,927,194 shares were traded during mid-day trading, a decline of 8% from the average session volume of 6,421,850 shares. The stock had previously closed at $48.53.

A number of other research analysts also recently commented on MP. Citigroup reaffirmed a "positive" rating on shares of MP Materials in a research note on Wednesday, July 15th. DA Davidson reissued a "buy" rating and issued a $82.00 target price on shares of MP Materials in a research report on Monday, August 24th. Freedom Broker started coverage on shares of MP Materials in a report on Wednesday, September 16th. They issued a "hold" rating and a $57.00 target price for the company. Needham & Company LLC dropped their price target 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. Finally, Barclays decreased their price target on shares of MP Materials from $69.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $75.00.

Hedge Funds Weigh In On MP Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Toth Financial Advisory Corp boosted its stake in MP Materials by 73.3% in the 2nd quarter. Toth Financial Advisory Corp now owns 520 shares of the company's stock worth $29,000 after purchasing an additional 220 shares during the period. Mitchell Mcleod Pugh & Williams Inc. grew its position in MP Materials by 3.7% during the 1st quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 6,643 shares of the company's stock worth $321,000 after purchasing an additional 240 shares in the last quarter. Allworth Financial LP raised its stake in MP Materials by 4.5% during the 2nd quarter. Allworth Financial LP now owns 5,679 shares of the company's stock valued at $318,000 after purchasing an additional 243 shares during the period. NFSG Corp raised its stake in MP Materials by 5.0% during the 1st quarter. NFSG Corp now owns 5,387 shares of the company's stock valued at $260,000 after purchasing an additional 255 shares during the period. Finally, Parallel Advisors LLC lifted its holdings in shares of MP Materials by 5.8% in the first quarter. Parallel Advisors LLC now owns 4,697 shares of the company's stock valued at $227,000 after purchasing an additional 259 shares in the last quarter. Institutional investors and hedge funds own 52.55% of the company's stock.

MP Materials Price Performance

The company has a market cap of $8.23 billion, a PE ratio of -135.93 and a beta of 1.98. The stock has a fifty day moving average price of $51.51 and a 200-day moving average price of $55.09. The company has a debt-to-equity ratio of 0.48, a current ratio of 9.51 and a quick ratio of 8.56.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.01). The business had revenue of $108.49 million for the quarter, compared to the consensus estimate of $96.89 million. MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%.MP Materials's revenue for the quarter was up 89.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.13) earnings per share. On average, equities analysts expect that MP Materials Corp. will post -0.17 earnings per share for the current year.

About MP Materials

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 produces rare earth concentrate, with a focus on neodymium-praseodymium (NdPr), materials used in high-strength permanent magnets.

The company is expanding its operations beyond mining and concentrate production by developing domestic capabilities to separate rare earth elements and manufacture neodymium-iron-boron (NdFeB) magnets.

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