MP Materials (NYSE:MP) Reaches New 1-Year High – Should You Buy?

MP Materials Corp. (NYSE:MP)’s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $21.04 and last traded at $20.88, with a volume of 838626 shares trading hands. The stock had previously closed at $19.64.

Analyst Upgrades and Downgrades

Several research firms recently commented on MP. Morgan Stanley raised their target price on MP Materials from $13.50 to $16.00 and gave the stock an “equal weight” rating in a research note on Thursday, September 19th. DA Davidson raised their price objective on shares of MP Materials from $20.00 to $23.00 and gave the stock a “buy” rating in a research report on Tuesday, October 1st. Benchmark reiterated a “buy” rating and set a $30.00 target price on shares of MP Materials in a research report on Friday, August 2nd. Canaccord Genuity Group reduced their price target on shares of MP Materials from $20.00 to $19.00 and set a “buy” rating for the company in a report on Tuesday, August 27th. Finally, BMO Capital Markets upped their price objective on shares of MP Materials from $16.00 to $18.50 and gave the company a “market perform” rating in a report on Friday, October 25th. Four research 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, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $21.40.

MP Materials Price Performance

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 business has a fifty day simple moving average of $17.74 and a 200 day simple moving average of $15.38. The stock has a market capitalization of $3.40 billion, a P/E ratio of -36.37 and a beta of 2.23.

MP Materials declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, September 3rd that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 13.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insider Activity

In related news, CEO James H. Litinsky sold 300,000 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $18.45, for a total value of $5,535,000.00. Following the transaction, the chief executive officer now directly owns 18,221,776 shares of the company’s stock, valued at approximately $336,191,767.20. The trade was a 1.62 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Ryan Corbett sold 15,195 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $18.30, for a total transaction of $278,068.50. Following the sale, the chief financial officer now owns 295,021 shares of the company’s stock, valued at $5,398,884.30. This trade represents a 4.90 % decrease in their position. The disclosure for this sale can be found here. 12.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On MP Materials

Several institutional investors have recently bought and sold shares of MP. Vanguard Group Inc. boosted its position in MP Materials by 1.7% during the first quarter. Vanguard Group Inc. now owns 13,861,266 shares of the company’s stock worth $198,216,000 after purchasing an additional 225,554 shares during the period. Baillie Gifford & Co. lifted its stake in shares of MP Materials by 2.8% during the 2nd quarter. Baillie Gifford & Co. now owns 2,819,743 shares of the company’s stock valued at $35,895,000 after buying an additional 76,288 shares in the last quarter. Victory Capital Management Inc. boosted its holdings in MP Materials by 1.2% in the 3rd quarter. Victory Capital Management Inc. now owns 2,359,092 shares of the company’s stock worth $41,638,000 after buying an additional 28,697 shares during the period. Dimensional Fund Advisors LP grew its stake in MP Materials by 3.1% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,355,982 shares of the company’s stock valued at $29,993,000 after buying an additional 71,454 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in MP Materials by 1.5% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,733,517 shares of the company’s stock valued at $22,068,000 after acquiring an additional 26,119 shares during the period. 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.