MP Materials (NYSE:MP) Trading 8.3% Higher on Strong Earnings

by · The Cerbat Gem

MP Materials Corp. (NYSE:MP – Get Free Report)’s share price rose 8.3% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $56.80 and last traded at $56.2370. Approximately 13,501,816 shares changed hands during trading, an increase of 25% from the average daily volume of 10,812,094 shares. The stock had previously closed at $51.95.

The company reported ($0.10) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.15) by $0.05. The firm had revenue of $53.55 million for the quarter, compared to the consensus estimate of $49.72 million. MP Materials had a negative net margin of 41.87% and a negative return on equity of 9.34%. The business’s revenue was down 14.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.12) earnings per share.

Wall Street Analysts Forecast Growth

MP has been the topic of several research analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of MP Materials in a research report on Wednesday, October 8th. BMO Capital Markets began coverage on shares of MP Materials in a research report on Thursday, October 9th. They set a “market perform” rating and a $76.00 target price on the stock. DA Davidson reiterated a “buy” rating and issued a $82.00 price target on shares of MP Materials in a research report on Friday. Wall Street Zen raised MP Materials from a “sell” rating to a “hold” rating in a research note on Saturday, July 26th. Finally, Cfra Research raised MP Materials to a “moderate buy” rating in a research note on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $77.80.

Get Our Latest Stock Report on MP Materials

Insider Activity

In other news, COO Michael Stuart Rosenthal sold 150,000 shares of the business’s stock in a transaction that occurred on Friday, August 29th. The stock was sold at an average price of $72.02, for a total value of $10,803,000.00. Following the completion of the sale, the chief operating officer directly owned 1,284,409 shares in the company, valued at $92,503,136.18. The trade was a 10.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MP Materials

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rothschild Investment LLC raised its position in shares of MP Materials by 4.0% during the 3rd quarter. Rothschild Investment LLC now owns 5,252 shares of the company’s stock worth $352,000 after acquiring an additional 202 shares in the last quarter. Putney Financial Group LLC raised its holdings in MP Materials by 148.5% during the third quarter. Putney Financial Group LLC now owns 5,230 shares of the company’s stock worth $351,000 after purchasing an additional 3,125 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of MP Materials by 2.7% during the 3rd quarter. Vanguard Group Inc. now owns 14,020,574 shares of the company’s stock worth $940,360,000 after buying an additional 363,975 shares during the last quarter. Northwestern Mutual Investment Management Company LLC purchased a new stake in shares of MP Materials during the 3rd quarter worth approximately $2,012,000. Finally, Capital CS Group LLC acquired a new position in shares of MP Materials in the 3rd quarter valued at $401,000. Hedge funds and other institutional investors own 52.55% of the company’s stock.

MP Materials Stock Performance

The company has a current ratio of 3.60, a quick ratio of 3.12 and a debt-to-equity ratio of 0.83. The firm’s fifty day moving average price is $69.96 and its 200-day moving average price is $51.28. The firm has a market cap of $10.03 billion, a price-to-earnings ratio of -89.75 and a beta of 2.26.

About MP Materials

(Get Free Report)

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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