MP Materials (NYSE:MP) Shares Up 1.4% - Here's Why

Key Points

• MP Materials shares rose 1.4% to approximately $41.65 in midday trading, although volume was 29% below its average.
• Analyst sentiment is mixed but leans positive: the stock has a consensus rating of “Moderate Buy” and an average price target of $71.92, despite recent sell and strong-sell downgrades.
• The company reported quarterly revenue of $108.49 million, up 89% year over year and above estimates, while posting an adjusted loss of $0.01 per share; institutional investors own 52.55% of the stock.

Shares of MP Materials Corp. (NYSE:MP - Get Free Report) traded up 1.4% during mid-day trading on Thursday. The company traded as high as $42.54 and last traded at $41.6530. Approximately 4,486,529 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 6,342,231 shares. The stock had previously closed at $41.06.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of MP Materials in a research note on Thursday, October 15th. Citigroup reaffirmed a "positive" rating on shares of MP Materials in a report on Wednesday, July 15th. Jefferies Financial Group reiterated a "buy" rating on shares of MP Materials in a report on Tuesday, September 8th. Zacks Research cut MP Materials from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. Finally, Needham & Company LLC reduced their price objective on MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, MP Materials has an average rating of "Moderate Buy" and a consensus price target of $71.92.

MP Materials Price Performance

The business's fifty day moving average is $48.56 and its 200 day moving average is $55.45. The company has a market cap of $7.42 billion, a P/E ratio of -122.51 and a beta of 1.98. The company has a current ratio of 9.51, a quick ratio of 8.56 and a debt-to-equity ratio of 0.48.

MP Materials (NYSE:MP - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) EPS for the quarter, meeting analysts' consensus estimates of ($0.01). MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%. The firm had revenue of $108.49 million for the quarter, compared to analysts' expectations of $96.89 million. During the same quarter in the prior year, the firm earned ($0.13) EPS. The business's revenue for the quarter was up 89.0% compared to the same quarter last year. As a group, sell-side analysts anticipate that MP Materials Corp. will post -0.20 EPS for the current year.

Institutional Trading of MP Materials

A number of institutional investors have recently modified their holdings of the business. Bank Julius Baer & Co. Ltd Zurich grew its position in MP Materials by 0.8% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 135,652 shares of the company's stock worth $6,389,000 after acquiring an additional 1,131 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in MP Materials by 9.6% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 32,761 shares of the company's stock valued at $1,549,000 after purchasing an additional 2,865 shares in the last quarter. ProShare Advisors LLC lifted its stake in MP Materials by 6.5% during the third quarter. ProShare Advisors LLC now owns 5,686 shares of the company's stock worth $269,000 after purchasing an additional 349 shares during the last quarter. State of Wyoming bought a new stake in MP Materials during the third quarter worth about $90,000. Finally, International Assets Investment Management LLC bought a new stake in MP Materials during the third quarter worth about $473,000. 52.55% of the stock is currently owned by hedge funds and other institutional investors.

About MP Materials

MP Materials Corp. is a rare earth materials company focused on restoring and expanding a fully integrated rare earth supply chain in the United States. The company owns and operates the Mountain Pass rare earth mine and processing facility in California, one of the largest rare earth production sites in the Western Hemisphere.

MP Materials primarily produces rare earth concentrate containing neodymium and praseodymium, elements used in high-strength permanent magnets. These magnets are important components in electric vehicles, wind turbines, robotics, defense systems, and other advanced technologies.

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