MP Materials (NYSE:MP) Trading Down 4.1% - What's Next?

Key Points

• MP Materials shares fell 4.1% to about $48.94 on Wednesday, with trading volume 36% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $76.29, despite recent target reductions from Needham and Barclays.
• The company’s latest quarterly revenue rose 89% year over year to $108.49 million and exceeded estimates, although MP Materials remains unprofitable with negative margins and analysts forecast a full-year loss.

MP Materials Corp. (NYSE:MP - Get Free Report) fell 4.1% on Wednesday . The stock traded as low as $48.72 and last traded at $48.9440. 4,127,224 shares traded hands during trading, a decline of 36% from the average daily volume of 6,493,937 shares. The stock had previously closed at $51.04.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Citigroup reiterated a "positive" rating on shares of MP Materials in a research note on Wednesday, July 15th. Weiss Ratings restated a "sell (d-)" rating on shares of MP Materials in a research note on Friday, July 17th. DA Davidson reiterated a "buy" rating and issued a $82.00 price target on shares of MP Materials in a research note on Monday, August 24th. Needham & Company LLC lowered their price target on shares of MP Materials from $81.00 to $73.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Finally, Barclays reduced their price objective on shares of MP Materials from $69.00 to $65.00 and set an "overweight" rating on the stock in a report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $76.29.

MP Materials Trading Down 4.1%

The company has a current ratio of 9.51, a quick ratio of 8.56 and a debt-to-equity ratio of 0.48. The firm has a market cap of $8.72 billion, a PE ratio of -143.95 and a beta of 1.94. The business has a fifty day moving average price of $50.98 and a 200 day moving average price of $55.93.

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. State Street Corp boosted its stake in MP Materials by 5.1% in the second quarter. State Street Corp now owns 7,773,746 shares of the company's stock valued at $435,408,000 after acquiring an additional 376,519 shares in the last quarter. Reaves W H & Co. Inc. boosted its position in shares of MP Materials by 0.8% in the 4th quarter. Reaves W H & Co. Inc. now owns 2,609,526 shares of the company's stock valued at $131,833,000 after purchasing an additional 19,618 shares during the period. Geode Capital Management LLC boosted its position in shares of MP Materials by 8.4% in the 4th quarter. Geode Capital Management LLC now owns 2,544,743 shares of the company's stock valued at $128,587,000 after purchasing an additional 197,375 shares during the period. Norges Bank purchased a new position in MP Materials during the 4th quarter worth approximately $82,531,000. Finally, Bank of New York Mellon Corp purchased a new position in MP Materials during the 2nd quarter worth approximately $65,230,000. 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 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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