MP Materials (NYSE:MP) Stock Falls 3% – Here’s What Happened

MP Materials Corp. (NYSE:MP)’s share price was down 3% on Monday. The company traded as low as $38.93 and last traded at $38.9480. Approximately 3,967,897 shares changed hands during trading, a decline of 38% from the average session volume of 6,412,904 shares. The stock had previously closed at $40.17.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Jefferies Financial Group reaffirmed a “buy” rating on shares of MP Materials in a research report on Tuesday, September 8th. Morgan Stanley reduced their price target on MP Materials from $73.00 to $66.00 and set an “overweight” rating for the company in a research report on Wednesday, October 7th. Freedom Broker assumed coverage on MP Materials in a research note on Wednesday, September 16th. They set a “hold” rating and a $57.00 price objective for the company. Needham & Company LLC decreased their price objective on MP Materials from $81.00 to $73.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Finally, DA Davidson reaffirmed a “buy” rating and set a $82.00 price objective on shares of MP Materials in a research report on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, MP Materials currently has an average rating of “Moderate Buy” and a consensus target price of $71.92.

MP Materials Stock Performance

The company has a debt-to-equity ratio of 0.48, a quick ratio of 8.56 and a current ratio of 9.51. The stock has a market cap of $6.94 billion, a P/E ratio of -114.55 and a beta of 1.98. The firm’s 50 day moving average is $51.25 and its 200 day moving average is $54.62.

MP Materials (NYSE:MP) 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). The company had revenue of $108.49 million during the quarter, compared to analysts’ expectations of $96.89 million. MP Materials had a negative net margin of 19.85% and a negative return on equity of 1.21%. MP Materials’s revenue for the quarter was up 89.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.13) earnings per share. Analysts anticipate that MP Materials Corp. will post -0.20 EPS for the current year.

Hedge Funds Weigh In On MP Materials

A number of large investors have recently made changes to their positions in MP. Oak Thistle LLC acquired a new position in MP Materials during the 2nd quarter valued at approximately $1,543,000. Amundi raised its holdings in shares of MP Materials by 260.2% in the first quarter. Amundi now owns 385,001 shares of the company’s stock worth $18,580,000 after buying an additional 278,126 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of MP Materials by 135.8% in the second quarter. NewEdge Advisors LLC now owns 39,866 shares of the company’s stock worth $2,233,000 after buying an additional 22,958 shares during the last quarter. State Street Corp raised its holdings in shares of MP Materials by 5.1% in the second quarter. State Street Corp now owns 7,773,746 shares of the company’s stock worth $435,408,000 after buying an additional 376,519 shares during the last quarter. Finally, Teamwork Financial Advisors LLC acquired a new stake in shares of MP Materials during the second quarter worth $10,648,000. 52.55% of the stock is owned by institutional investors and hedge funds.

About MP Materials

MP Materials Corp. is a rare earth materials company focused on restoring and expanding a fully integrated rare earth supply chain in the United States. The company owns and operates the Mountain Pass rare earth mine and processing facility in California, one of the largest rare earth production sites in the Western Hemisphere.

MP Materials primarily produces rare earth concentrate containing neodymium and praseodymium, elements used in high-strength permanent magnets. These magnets are important components in electric vehicles, wind turbines, robotics, defense systems, and other advanced technologies.