MP Materials (NYSE:MP) Trading Down 4.5% – What’s Next?

Shares of MP Materials Corp. (NYSE:MP) were down 4.5% during trading on Thursday . The stock traded as low as $64.98 and last traded at $65.44. Approximately 3,997,907 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 7,005,717 shares. The stock had previously closed at $68.55.

Analyst Upgrades and Downgrades

Several analysts have commented on MP shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MP Materials in a research report on Tuesday, April 21st. DA Davidson reissued a “buy” rating and issued a $82.00 price target on shares of MP Materials in a research report on Wednesday, May 20th. Morgan Stanley boosted their price target on shares of MP Materials from $62.00 to $70.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Wall Street Zen raised shares of MP Materials from a “sell” rating to a “hold” rating in a research report on Sunday, March 8th. Finally, Needham & Company LLC began coverage on shares of MP Materials in a research report on Monday. They issued a “buy” rating and a $81.00 price target on the stock. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $80.14.

MP Materials Trading Down 4.5%

The firm’s 50-day moving average price is $60.43 and its 200-day moving average price is $59.71. The company has a quick ratio of 6.58, a current ratio of 7.18 and a debt-to-equity ratio of 0.47. The company has a market cap of $11.65 billion, a P/E ratio of -155.81 and a beta of 1.86.

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

Insider Buying and Selling

In related news, CFO Ryan Corbett sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $75.00, for a total transaction of $1,500,000.00. Following the sale, 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Michael Stuart Rosenthal bought 17,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were purchased at an average cost of $56.62 per share, for a total transaction of $962,540.00. Following the acquisition, the chief operating officer directly owned 1,333,673 shares in the company, valued at $75,512,565.26. This trade represents a 1.29% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 1,066,000 shares of company stock valued at $69,329,207. Company insiders own 8.20% of the company’s stock.

Institutional Trading of MP Materials

A number of hedge funds and other institutional investors have recently bought and sold shares of MP. EMC Capital Management bought a new stake in MP Materials during the 4th quarter worth approximately $25,000. Whittier Trust Co. of Nevada Inc. bought a new stake in MP Materials during the 4th quarter worth approximately $26,000. REAP Financial Group LLC bought a new stake in MP Materials during the 4th quarter worth approximately $26,000. Financial Consulate Inc. increased its holdings in MP Materials by 555.3% during the 4th quarter. Financial Consulate Inc. now owns 557 shares of the company’s stock worth $28,000 after acquiring an additional 472 shares during the period. Finally, Los Angeles Capital Management LLC bought a new stake in MP Materials during the 4th quarter worth approximately $28,000. Institutional investors own 52.55% of the company’s stock.

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.