MP Materials (NYSE:MP) Trading Down 6.1% – Here’s What Happened

MP Materials Corp. (NYSE:MP) was down 6.1% during trading on Monday . The stock traded as low as $53.04 and last traded at $53.2120. Approximately 6,523,127 shares changed hands during trading, a decline of 39% from the average daily volume of 10,648,597 shares. The stock had previously closed at $56.66.

Wall Street Analysts Forecast Growth

MP has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft raised shares of MP Materials from a “hold” rating to a “buy” rating and increased their price objective for the company from $68.00 to $71.00 in a research report on Monday, November 10th. BMO Capital Markets upgraded shares of MP Materials from a “market perform” rating to an “outperform” rating and lowered their target price for the stock from $76.00 to $75.00 in a research note on Monday, November 24th. JPMorgan Chase & Co. raised MP Materials from a “neutral” rating to an “overweight” rating and dropped their target price for the company from $75.00 to $74.00 in a report on Friday, November 14th. Bank of America lifted their price target on MP Materials from $78.00 to $112.00 and gave the stock a “buy” rating in a report on Wednesday, October 15th. Finally, Daiwa Capital Markets began coverage on MP Materials in a research report on Monday, September 22nd. They set an “outperform” rating and a $80.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, MP Materials presently has a consensus rating of “Moderate Buy” and a consensus price target of $78.91.

MP Materials Stock Performance

The company has a current ratio of 8.05, a quick ratio of 7.51 and a debt-to-equity ratio of 0.47. The firm’s fifty day moving average price is $65.50 and its 200-day moving average price is $58.49. The firm has a market cap of $9.43 billion, a price-to-earnings ratio of -74.95 and a beta of 1.70.

MP Materials (NYSE:MP) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.10) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.05. MP Materials had a negative net margin of 50.55% and a negative return on equity of 7.69%. The firm had revenue of $53.55 million during the quarter, compared to analysts’ expectations of $49.72 million. During the same period in the previous year, the company earned ($0.12) earnings per share. MP Materials’s quarterly revenue was down 14.9% compared to the same quarter last year. Analysts expect that MP Materials Corp. will post -0.19 earnings per share for the current year.

Insider Activity

In other news, CEO James H. Litinsky sold 385,000 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $62.94, for a total value of $24,231,900.00. Following the completion of the sale, the chief executive officer directly owned 13,105,965 shares of the company’s stock, valued at approximately $824,889,437.10. This represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Ryan Corbett sold 38,146 shares of MP Materials stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $60.00, for a total transaction of $2,288,760.00. Following the completion of the transaction, the chief financial officer directly owned 156,666 shares in the company, valued at $9,399,960. The trade was a 19.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 691,557 shares of company stock valued at $43,538,586 over the last three months. Company insiders own 12.60% of the company’s stock.

Institutional Investors Weigh In On MP Materials

Several large investors have recently modified their holdings of the stock. Sound Income Strategies LLC lifted its position in MP Materials by 420.0% in the third quarter. Sound Income Strategies LLC now owns 364 shares of the company’s stock valued at $26,000 after purchasing an additional 294 shares during the period. Grove Bank & Trust purchased a new stake in shares of MP Materials during the 3rd quarter worth $34,000. SJS Investment Consulting Inc. grew its stake in shares of MP Materials by 4,600.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 564 shares of the company’s stock worth $38,000 after purchasing an additional 552 shares during the period. Hilltop National Bank grew its position in MP Materials by 500.0% during the third quarter. Hilltop National Bank now owns 600 shares of the company’s stock worth $40,000 after buying an additional 500 shares during the period. Finally, Montag A & Associates Inc. increased its holdings in MP Materials by 106.2% in the third quarter. Montag A & Associates Inc. now owns 635 shares of the company’s stock valued at $43,000 after buying an additional 327 shares in the last quarter. Hedge funds and other institutional investors own 52.55% of the company’s stock.

MP Materials Company Profile

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.