Traders Purchase High Volume of Call Options on MP Materials (NYSE:MP)

Key Points

• MP Materials Corp. experienced a surge in call options trading, with investors acquiring 52,449 call options, marking a 15% increase from the average daily volume.
• Institutional investors have significantly increased their stakes in MP Materials, with notable boosts in holdings from firms such as AdvisorNet Financial Inc. and MAI Capital Management, indicating growing confidence in the stock.
• MP Materials reported better-than-expected quarterly earnings with revenue of $57.39 million, surpassing predictions and showing an 83.6% year-over-year increase despite a negative EPS.

MP Materials Corp. (NYSE:MP - Get Free Report) saw unusually large options trading activity on Monday. Stock investors acquired 52,449 call options on the company. Thisisanincreaseof15% compared to the average daily volume of 45,453 call options.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Highline Wealth Partners LLC acquired a new stake in MP Materials during the 2nd quarter valued at approximately $25,000. AdvisorNet Financial Inc boosted its holdings in shares of MP Materials by 168.7% during the 2nd quarter. AdvisorNet Financial Inc now owns 806 shares of the company's stock worth $27,000 after buying an additional 506 shares in the last quarter. NBC Securities Inc. boosted its holdings in shares of MP Materials by 119,900.0% during the 1st quarter. NBC Securities Inc. now owns 1,200 shares of the company's stock worth $29,000 after buying an additional 1,199 shares in the last quarter. MAI Capital Management boosted its holdings in shares of MP Materials by 132.7% during the 1st quarter. MAI Capital Management now owns 1,403 shares of the company's stock worth $34,000 after buying an additional 800 shares in the last quarter. Finally, Spire Wealth Management boosted its holdings in shares of MP Materials by 181.3% during the 2nd quarter. Spire Wealth Management now owns 1,010 shares of the company's stock worth $34,000 after buying an additional 651 shares in the last quarter. Institutional investors and hedge funds own 52.55% of the company's stock.

Wall Street Analyst Weigh In

MP has been the subject of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft increased their target price on shares of MP Materials from $20.00 to $69.00 and gave the stock a "hold" rating in a research report on Thursday, July 17th. Jefferies Financial Group raised shares of MP Materials from a "hold" rating to a "buy" rating and set a $80.00 target price on the stock in a research note on Friday, August 1st. Morgan Stanley set a $65.00 price objective on shares of MP Materials and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Robert W. Baird lifted their price objective on shares of MP Materials from $52.00 to $69.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 23rd. Finally, Cowen reissued a "buy" rating on shares of MP Materials in a research note on Friday. Five equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. Based on data from MarketBeat, MP Materials currently has a consensus rating of "Moderate Buy" and a consensus price target of $60.63.

MP Materials Stock Down 0.6%

MP traded down $0.42 during trading on Monday, reaching $73.90. 15,241,105 shares of the stock were exchanged, compared to its average volume of 9,140,696. The stock has a market cap of $12.08 billion, a P/E ratio of -117.24 and a beta of 2.30. MP Materials has a twelve month low of $11.08 and a twelve month high of $82.50. The stock's 50 day moving average price is $44.20 and its two-hundred day moving average price is $30.83. The company has a debt-to-equity ratio of 0.83, a quick ratio of 3.12 and a current ratio of 3.60.

MP Materials (NYSE:MP - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.13) EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.03. MP Materials had a negative net margin of 41.87% and a negative return on equity of 9.34%. The firm had revenue of $57.39 million during the quarter, compared to analysts' expectations of $44.84 million. During the same period in the previous year, the business posted ($0.17) earnings per share. The company's revenue for the quarter was up 83.6% compared to the same quarter last year. Equities analysts expect that MP Materials will post -0.19 EPS for the current year.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals.

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