MP Materials (NYSE:MP) Trading Down 1.1% – Here’s Why

MP Materials Corp. (NYSE:MP) shares dropped 1.1% during mid-day trading on Monday . The stock traded as low as $59.37 and last traded at $60.2350. 4,105,682 shares were traded during trading, a decline of 41% from the average daily volume of 6,900,887 shares. The stock had previously closed at $60.88.

More MP Materials News

Here are the key news stories impacting MP Materials this week:

• Positive Sentiment: Bank of America reiterated a Buy rating and $85 price target, arguing MP Materials may see little operational impact from China’s export-control move. MP Materials seen largely insulated after China export-control move
• Neutral Sentiment: Brokerage coverage continues to show a consensus Buy rating for MP Materials, reinforcing generally constructive analyst sentiment. MP Materials Corp. (NYSE:MP) Receives Consensus Rating of “Buy” from Brokerages
• Negative Sentiment: China added MP Materials to its dual-use export control list, increasing uncertainty around trade flows and adding pressure to the stock. Market Chatter: MP Materials, USA Rare Earth Hit by China’s Latest Trade Curbs

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on MP. Weiss Ratings restated a “sell (d-)” rating on shares of MP Materials in a research report on Tuesday, April 21st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of MP Materials in a research note on Tuesday, May 12th. Needham & Company LLC started coverage on MP Materials in a report on Monday, June 1st. They issued a “buy” rating and a $81.00 target price for the company. Wedbush lifted their price target on MP Materials from $90.00 to $100.00 and gave the stock an “outperform” rating in a report on Friday, May 8th. Finally, William Blair reissued an “outperform” rating on shares of MP Materials in a research report on Wednesday, March 4th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, MP Materials presently has a consensus rating of “Buy” and an average price target of $80.14.

MP Materials Stock Down 1.1%

The business’s 50 day moving average is $62.34 and its 200-day moving average is $59.67. The company has a debt-to-equity ratio of 0.47, a current ratio of 7.18 and a quick ratio of 6.58. The company has a market cap of $10.72 billion, a PE ratio of -143.42 and a beta of 1.86.

MP Materials (NYSE:MP) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.04. MP Materials had a negative return on equity of 2.27% and a negative net margin of 28.00%.The firm had revenue of $90.65 million during the quarter, compared to the consensus estimate of $74.82 million. During the same period in the prior year, the company posted ($0.12) earnings per share. The firm’s quarterly revenue was up 49.1% compared to the same quarter last year. As a group, analysts predict that MP Materials Corp. will post -0.04 EPS for the current year.

Insider Buying and Selling at MP Materials

In other news, COO Michael Stuart Rosenthal bought 17,000 shares of the firm’s stock in a transaction on Wednesday, May 20th. The shares were bought at an average cost of $56.62 per share, for a total transaction of $962,540.00. Following the completion of the transaction, the chief operating officer owned 1,333,673 shares in the company, valued at $75,512,565.26. This trade represents a 1.29% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Ryan Corbett sold 20,000 shares of the firm’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $75.00, for a total value of $1,500,000.00. Following the completion of the transaction, the chief financial officer owned 109,017 shares of the company’s stock, valued at approximately $8,176,275. This represents a 15.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,205,167 shares of company stock valued at $79,371,654. 8.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On MP Materials

A number of hedge funds and other institutional investors have recently modified their holdings of the company. EMC Capital Management acquired a new stake in shares of MP Materials during the fourth quarter worth $25,000. Whittier Trust Co. of Nevada Inc. acquired a new position in MP Materials in the fourth quarter valued at $26,000. REAP Financial Group LLC purchased a new position in MP Materials during the fourth quarter worth about $26,000. Financial Consulate Inc. lifted its position in MP Materials by 555.3% during the fourth quarter. Financial Consulate Inc. now owns 557 shares of the company’s stock worth $28,000 after buying an additional 472 shares during the period. Finally, Los Angeles Capital Management LLC acquired a new stake in MP Materials in the 4th quarter worth about $28,000. 52.55% of the stock is currently owned by hedge funds and other institutional investors.

About MP Materials

MP Materials Corporation operates as a vertically integrated producer of rare earth materials in North America. The company owns and manages the Mountain Pass Rare Earth Mine and Processing Facility in California, the only commercially viable rare earth mining and processing site in the United States. MP Materials extracts, separates and refines critical rare earth elements—such as neodymium, praseodymium, and cerium—which are essential inputs for permanent magnets used in electric vehicles, wind turbines, and various defense applications.

The Mountain Pass mine first began commercial rare earth production in the 1950s and was later operated by Molycorp until its bankruptcy in 2015.