MP Materials (NYSE:MP) Trading 2.3% Higher on Strong Earnings

Shares of MP Materials Corp. (NYSE:MP) rose 2.3% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $60.29 and last traded at $60.00. Approximately 6,554,598 shares traded hands during trading, a decline of 23% from the average daily volume of 8,544,060 shares. The stock had previously closed at $58.66.

The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.01. The company had revenue of $52.69 million during the quarter, compared to the consensus estimate of $76.06 million. MP Materials had a negative return on equity of 7.69% and a negative net margin of 50.55%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MP. Morgan Stanley raised MP Materials from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $68.50 to $71.00 in a research report on Friday, December 5th. TD Securities upgraded MP Materials to a “strong-buy” rating in a research note on Monday, February 9th. Deutsche Bank Aktiengesellschaft raised MP Materials from a “hold” rating to a “buy” rating and upped their target price for the company from $68.00 to $71.00 in a research report on Monday, November 10th. BMO Capital Markets raised shares of MP Materials from a “market perform” rating to an “outperform” rating and decreased their price target for the stock from $76.00 to $75.00 in a research report on Monday, November 24th. Finally, William Blair began coverage on shares of MP Materials in a report on Tuesday, January 13th. They issued an “outperform” rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $78.91.

Insider Activity at MP Materials

In related news, CEO James H. Litinsky sold 385,000 shares of the firm’s 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 sale, the chief executive officer owned 13,105,965 shares of the company’s stock, valued at approximately $824,889,437.10. This trade represents a 2.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Ryan Corbett sold 38,146 shares of the business’s 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 transaction, the chief financial officer directly owned 156,666 shares of the company’s stock, valued at approximately $9,399,960. This trade represents a 19.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 723,146 shares of company stock valued at $45,767,276 over the last ninety days. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On MP Materials

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caxton Associates LLP bought a new position in MP Materials in the 2nd quarter valued at about $132,238,000. National Bank of Canada FI raised its holdings in MP Materials by 19,314.3% during the second quarter. National Bank of Canada FI now owns 2,013,462 shares of the company’s stock worth $66,987,000 after purchasing an additional 2,003,091 shares in the last quarter. Norges Bank bought a new stake in MP Materials during the fourth quarter worth approximately $82,531,000. Reaves W H & Co. Inc. boosted its stake in MP Materials by 168.4% during the 3rd quarter. Reaves W H & Co. Inc. now owns 2,589,908 shares of the company’s stock valued at $173,705,000 after purchasing an additional 1,624,908 shares in the last quarter. Finally, BNP Paribas Financial Markets increased its position in shares of MP Materials by 76.3% during the 2nd quarter. BNP Paribas Financial Markets now owns 2,921,542 shares of the company’s stock valued at $97,200,000 after purchasing an additional 1,264,243 shares during the period. 52.55% of the stock is currently owned by institutional investors and hedge funds.

MP Materials Stock Performance

The company has a fifty day moving average price of $59.89 and a two-hundred day moving average price of $64.38. The firm has a market cap of $10.63 billion, a price-to-earnings ratio of -84.51 and a beta of 1.60. The company has a debt-to-equity ratio of 0.47, a current ratio of 8.05 and a quick ratio of 7.51.

MP Materials Company Profile

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.