MP Materials (NYSE:MP) Shares Down 3.8% – Here’s Why

MP Materials Corp. (NYSE:MP)’s share price fell 3.8% during mid-day trading on Wednesday . The company traded as low as $22.22 and last traded at $22.23. 1,740,037 shares traded hands during mid-day trading, a decline of 46% from the average session volume of 3,234,927 shares. The stock had previously closed at $23.11.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on MP. Deutsche Bank Aktiengesellschaft cut their target price on shares of MP Materials from $13.50 to $12.50 and set a “hold” rating on the stock in a research note on Tuesday, August 6th. Robert W. Baird boosted their price objective on shares of MP Materials from $20.00 to $25.00 and gave the company an “outperform” rating in a research report on Friday, September 27th. DA Davidson boosted their price objective on shares of MP Materials from $20.00 to $23.00 and gave the company a “buy” rating in a research report on Tuesday, October 1st. Morgan Stanley boosted their price objective on shares of MP Materials from $13.50 to $16.00 and gave the company an “equal weight” rating in a research report on Thursday, September 19th. Finally, Canaccord Genuity Group boosted their price objective on shares of MP Materials from $23.00 to $26.00 and gave the company a “buy” rating in a research report on Wednesday, November 27th. Four analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $22.10.

MP Materials Trading Down 10.3 %

The company has a current ratio of 6.93, a quick ratio of 6.13 and a debt-to-equity ratio of 0.88. The stock has a market cap of $3.38 billion, a P/E ratio of -39.93 and a beta of 2.24. The firm’s 50-day simple moving average is $18.54 and its 200 day simple moving average is $15.53.

MP Materials announced that its Board of Directors has authorized a share repurchase program on Tuesday, September 3rd that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 13.4% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Insider Transactions at MP Materials

In related news, CEO James H. Litinsky sold 300,000 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $18.45, for a total transaction of $5,535,000.00. Following the completion of the sale, the chief executive officer now directly owns 18,221,776 shares of the company’s stock, valued at $336,191,767.20. This represents a 1.62 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Ryan Corbett sold 35,000 shares of the stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $21.50, for a total transaction of $752,500.00. Following the sale, the chief financial officer now directly owns 260,021 shares of the company’s stock, valued at approximately $5,590,451.50. This represents a 11.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 650,195 shares of company stock valued at $12,631,569. Company insiders own 12.60% of the company’s stock.

Institutional Investors Weigh In On MP Materials

Several hedge funds have recently made changes to their positions in MP. Comerica Bank increased its stake in MP Materials by 16.7% in the 1st quarter. Comerica Bank now owns 71,564 shares of the company’s stock valued at $1,023,000 after buying an additional 10,264 shares during the period. Teachers Retirement System of The State of Kentucky lifted its stake in MP Materials by 12.4% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 47,179 shares of the company’s stock valued at $675,000 after acquiring an additional 5,200 shares during the last quarter. CWM LLC grew its position in MP Materials by 425.5% in the second quarter. CWM LLC now owns 9,827 shares of the company’s stock worth $125,000 after acquiring an additional 7,957 shares in the last quarter. SG Americas Securities LLC acquired a new position in shares of MP Materials during the 2nd quarter worth $194,000. Finally, Mirador Capital Partners LP raised its holdings in shares of MP Materials by 9.7% during the 2nd quarter. Mirador Capital Partners LP now owns 21,234 shares of the company’s stock valued at $270,000 after purchasing an additional 1,880 shares in the last quarter. Hedge funds and other institutional investors own 52.55% of the company’s stock.

MP Materials Company Profile

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.