MP Materials (NYSE:MP) Stock Falls 4.8% - What's Next?

Key Points

• MP Materials shares fell 4.8% to about $46.46, with trading volume below the average session level. The stock remains below its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $76.29, despite recent target reductions by Deutsche Bank and JPMorgan.
• Second-quarter revenue rose 89% year over year to $108.49 million, exceeding estimates, though the company remained unprofitable. Institutional investors own 52.55% of the stock, with several major holders increasing their positions.

MP Materials Corp. (NYSE:MP - Get Free Report) dropped 4.8% during trading on Monday. The company traded as low as $46.31 and last traded at $46.4640. Approximately 5,255,298 shares changed hands during mid-day trading, a decline of 19% from the average session volume of 6,460,043 shares. The stock had previously closed at $48.83.

Wall Street Analyst Weigh In

Several research firms recently weighed in on MP. Deutsche Bank Aktiengesellschaft cut their price objective on shares of MP Materials from $70.00 to $61.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Morgan Stanley restated an "overweight" rating on shares of MP Materials in a research report on Wednesday, August 19th. DA Davidson reaffirmed a "buy" rating and set a $82.00 price target on shares of MP Materials in a report on Monday, August 24th. Citigroup reiterated a "positive" rating on shares of MP Materials in a research report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of MP Materials from $75.00 to $60.00 and set an "overweight" rating for the company in a research report on Wednesday, July 29th. One research 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 company's stock. According to data from MarketBeat, MP Materials has an average rating of "Moderate Buy" and a consensus target price of $76.29.

MP Materials Stock Performance

The company has a debt-to-equity ratio of 0.48, a current ratio of 9.51 and a quick ratio of 8.56. The stock has a market cap of $8.28 billion, a P/E ratio of -136.65 and a beta of 1.94. The stock has a 50-day simple moving average of $51.12 and a 200-day simple moving average of $55.72.

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. boosted its holdings in shares of MP Materials by 12.7% during the 2nd quarter. QRG Capital Management Inc. now owns 4,796 shares of the company's stock valued at $269,000 after acquiring an additional 541 shares in the last quarter. Envestnet Asset Management Inc. boosted its stake in shares of MP Materials by 107.9% during the second quarter. Envestnet Asset Management Inc. now owns 115,195 shares of the company's stock valued at $6,452,000 after purchasing an additional 59,783 shares in the last quarter. State Street Corp boosted its stake in shares of MP Materials by 5.1% during the second quarter. State Street Corp now owns 7,773,746 shares of the company's stock valued at $435,408,000 after purchasing an additional 376,519 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of MP Materials by 2.0% during the second quarter. The Manufacturers Life Insurance Company now owns 121,478 shares of the company's stock worth $6,804,000 after purchasing an additional 2,411 shares during the last quarter. Finally, Sequoia Financial Advisors LLC bought a new stake in shares of MP Materials during the second quarter worth about $220,000. 52.55% of the stock is currently owned by institutional investors and hedge funds.

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 is one of the largest rare earth production facilities in the Western Hemisphere and produces rare earth concentrate, with an emphasis on neodymium-praseodymium (NdPr), materials used in high-performance permanent magnets.

The company is expanding its operations beyond mining and concentrate production into separated rare earth products and magnet manufacturing.

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