MP Materials (NYSE:MP) Stock Falls 2.4% - Here's Why

Key Points

• MP Materials shares fell 2.4% to about $38.53 in midday trading, with volume slightly below its average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $71.92 target price, despite Deutsche Bank lowering its target to $61 and Zacks downgrading the stock to “Strong Sell.”
• The company’s latest quarter showed revenue growth of 89% year over year to $108.49 million, though MP Materials remained unprofitable with a negative net margin and analysts expect a full-year loss.

MP Materials Corp. (NYSE:MP - Get Free Report)'s share price was down 2.4% during mid-day trading on Thursday. The stock traded as low as $37.57 and last traded at $38.5340. 5,901,665 shares were traded during trading, a decline of 7% from the average daily volume of 6,379,960 shares. The stock had previously closed at $39.50.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on MP shares. Deutsche Bank Aktiengesellschaft lowered their target price on MP Materials from $70.00 to $61.00 and set a "buy" rating on the stock in a report on Thursday, July 9th. Jefferies Financial Group reissued a "buy" rating on shares of MP Materials in a report on Tuesday, September 8th. Citigroup restated a "positive" rating on shares of MP Materials in a research report on Wednesday, July 15th. Freedom Broker initiated coverage on MP Materials in a research note on Wednesday, September 16th. They set a "hold" rating and a $57.00 price objective on the stock. Finally, Zacks Research cut MP Materials from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 26th. One equities research 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 stock. According to MarketBeat.com, MP Materials has an average rating of "Moderate Buy" and a consensus target price of $71.92.

MP Materials Price Performance

The company has a fifty day simple moving average of $50.33 and a two-hundred day simple moving average of $54.41. 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 market capitalization of $6.86 billion, a price-to-earnings ratio of -113.33 and a beta of 1.98.

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

Institutional Trading of MP Materials

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MP. State Street Corp lifted its holdings in shares of MP Materials by 5.1% during the 2nd quarter. State Street Corp now owns 7,773,746 shares of the company's stock worth $435,408,000 after acquiring an additional 376,519 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of MP Materials in the second quarter worth approximately $65,230,000. Principal Financial Group Inc. grew its holdings in MP Materials by 32.4% in the first quarter. Principal Financial Group Inc. now owns 919,083 shares of the company's stock valued at $44,355,000 after purchasing an additional 225,009 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in MP Materials by 1.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 564,808 shares of the company's stock valued at $31,635,000 after purchasing an additional 8,556 shares during the period. Finally, Amundi grew its holdings in MP Materials by 32.5% in the second quarter. Amundi now owns 509,946 shares of the company's stock valued at $28,562,000 after purchasing an additional 124,945 shares during the period. Hedge funds and other institutional investors own 52.55% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.