MP Materials (NYSE:MP) Stock Price Up 3.6% - Time to Buy?

Key Points

• MP Materials shares rose 3.6% to about $48.51, with trading volume below the stock’s average daily volume.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $75.42, although some firms recently lowered targets and Zacks issued a “Strong Sell” downgrade.
• The company reported quarterly revenue of $108.49 million, up 89% year over year and above estimates, but remained unprofitable with negative net margins; institutional investors own 52.55% of the stock.

MP Materials Corp. (NYSE:MP - Get Free Report)'s stock price traded up 3.6% during trading on Tuesday. The stock traded as high as $48.65 and last traded at $48.5060. Approximately 4,308,899 shares were traded during mid-day trading, a decline of 33% from the average daily volume of 6,430,290 shares. The stock had previously closed at $46.84.

Analyst Ratings Changes

Several research analysts recently commented on MP shares. Jefferies Financial Group reissued a "buy" rating on shares of MP Materials in a research note on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft lowered their price objective on MP Materials from $70.00 to $61.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. DA Davidson restated a "buy" rating and set a $82.00 target price on shares of MP Materials in a research note on Monday, August 24th. Zacks Research downgraded shares of MP Materials from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 26th. Finally, JPMorgan Chase & Co. lowered their price target on shares of MP Materials from $75.00 to $60.00 and set an "overweight" rating for the company in a report on Wednesday, July 29th. One 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 given a Sell rating to the company's stock. Based on data from MarketBeat.com, MP Materials presently has an average rating of "Moderate Buy" and a consensus price target of $75.42.

MP Materials Trading Up 3.6%

The company has a market cap of $8.64 billion, a price-to-earnings ratio of -142.66 and a beta of 1.98. The company has a quick ratio of 8.56, a current ratio of 9.51 and a debt-to-equity ratio of 0.48. The business's fifty day simple moving average is $51.37 and its two-hundred day simple moving average is $55.15.

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, meeting analysts' consensus estimates of ($0.01). MP Materials had a negative net margin of 19.85% and a negative return on equity of 1.21%. The firm had revenue of $108.49 million for the quarter, compared to the consensus estimate of $96.89 million. During the same period last year, the firm posted ($0.13) EPS. The company's revenue was up 89.0% on a year-over-year basis. On average, equities analysts predict that MP Materials Corp. will post -0.17 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. CX Institutional increased its position in MP Materials by 15.7% during the third quarter. CX Institutional now owns 2,105 shares of the company's stock worth $100,000 after buying an additional 285 shares during the period. Hickory Point Bank & Trust grew its position in shares of MP Materials by 25.0% during the third quarter. Hickory Point Bank & Trust now owns 2,500 shares of the company's stock worth $118,000 after acquiring an additional 500 shares during the last quarter. QRG Capital Management Inc. grew its position in shares of MP Materials by 12.7% during the second quarter. QRG Capital Management Inc. now owns 4,796 shares of the company's stock worth $269,000 after acquiring an additional 541 shares during the last quarter. Envestnet Asset Management Inc. raised its position in MP Materials by 107.9% in the 2nd 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 during the last quarter. Finally, State Street Corp boosted its stake in 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 purchasing an additional 376,519 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 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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