MP Materials (NYSE:MP) Stock Falls 1.4% - Should You Sell?

Key Points

• MP Materials shares fell 1.4% to about $37.82, with trading volume 17% below its average.
• Analyst views were mixed, but the consensus remained “Moderate Buy” with a $71.92 price target; recent target cuts and sell ratings were offset by buy ratings.
• Latest quarterly results matched EPS expectations and beat revenue estimates, with revenue up 89% year over year; the company nevertheless reported a negative net margin.

MP Materials Corp. (NYSE:MP - Get Free Report) shares fell 1.4% on Tuesday. The company traded as low as $37.35 and last traded at $37.8210. 5,228,103 shares changed hands during trading, a decline of 17% from the average daily volume of 6,317,594 shares. The stock had previously closed at $38.35.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in 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. DA Davidson reaffirmed a "buy" rating and set a $82.00 price objective on shares of MP Materials in a research note on Monday, August 24th. Barclays cut their price objective on MP Materials from $69.00 to $65.00 and set an "overweight" rating on the stock in a research report on Thursday, July 16th. Needham & Company LLC lowered their price objective on MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Finally, Wall Street Zen lowered shares of MP Materials from a "hold" rating to a "sell" rating in a research report on Sunday, October 11th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, MP Materials has a consensus rating of "Moderate Buy" and a consensus price target of $71.92.

MP Materials Price Performance

The company has a market capitalization of $6.74 billion, a price-to-earnings ratio of -111.23 and a beta of 1.98. 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 company has a 50-day moving average price of $47.52 and a 200-day moving average price of $55.09.

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 (EPS) for the quarter, meeting the consensus estimate of ($0.01). The firm had revenue of $108.49 million for 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 revenue was up 89.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.13) EPS. On average, equities research analysts expect that MP Materials Corp. will post -0.20 EPS for the current fiscal year.

Institutional Investors Weigh In On MP Materials

Several institutional investors have recently added to or reduced their stakes in MP. Toth Financial Advisory Corp lifted 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 in the last quarter. Wedmont Private Capital boosted its stake in shares of MP Materials by 2.0% during the 3rd quarter. Wedmont Private Capital now owns 11,866 shares of the company's stock worth $547,000 after purchasing an additional 234 shares during the period. Allworth Financial LP lifted its stake in shares of MP Materials by 4.5% during the 2nd quarter. Allworth Financial LP now owns 5,679 shares of the company's stock worth $318,000 after acquiring an additional 243 shares during the last quarter. NFSG Corp grew its holdings in shares of MP Materials by 5.0% in the first quarter. NFSG Corp now owns 5,387 shares of the company's stock worth $260,000 after purchasing an additional 255 shares during the last quarter. Finally, Putney Financial Group LLC raised its position in MP Materials by 4.4% during the 3rd quarter. Putney Financial Group LLC now owns 6,123 shares of the company's stock valued at $290,000 after purchasing an additional 257 shares in the last quarter. 52.55% of the stock is owned by hedge funds and other institutional investors.

MP Materials Company Profile

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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