MP Materials (NYSE:MP) Reaches New 12-Month High – Should You Buy?

MP Materials Corp. (NYSE:MP) hit a new 52-week high during trading on Tuesday . The stock traded as high as $24.07 and last traded at $24.09, with a volume of 2942837 shares trading hands. The stock had previously closed at $22.23.

Analyst Upgrades and Downgrades

MP has been the topic of several recent analyst reports. Canaccord Genuity Group upped their target price on shares of MP Materials from $23.00 to $26.00 and gave the stock a “buy” rating in a research report on Wednesday, November 27th. JPMorgan Chase & Co. lifted their price objective on MP Materials from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, October 21st. Finally, BMO Capital Markets raised their price target on MP Materials from $19.50 to $22.00 and gave the company a “market perform” rating in a research report on Monday, January 27th. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $22.45.

MP Materials Stock Up 10.4 %

The firm has a market cap of $4.01 billion, a PE ratio of -45.35 and a beta of 2.34. The company has a quick ratio of 6.13, a current ratio of 6.93 and a debt-to-equity ratio of 0.88. The firm’s 50 day moving average is $19.46 and its 200-day moving average is $16.94.

MP Materials (NYSE:MP) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.04). MP Materials had a negative return on equity of 6.78% and a negative net margin of 32.24%. The business had revenue of $62.93 million for the quarter, compared to analyst estimates of $45.30 million. During the same quarter last year, the business earned $0.02 EPS. As a group, equities research analysts expect that MP Materials Corp. will post -0.54 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Ryan Corbett sold 35,000 shares of MP Materials stock in a transaction 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 transaction, the chief financial officer now owns 260,021 shares in the company, valued at approximately $5,590,451.50. The trade was a 11.86 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO James H. Litinsky sold 234,667 shares of the stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $20.68, for a total value of $4,852,913.56. Following the completion of the sale, the chief executive officer now owns 17,608,409 shares of the company’s stock, valued at approximately $364,141,898.12. This represents a 1.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 884,862 shares of company stock valued at $17,484,482. Insiders own 12.60% of the company’s stock.

Institutional Investors Weigh In On MP Materials

Institutional investors and hedge funds have recently modified their holdings of the stock. Handelsbanken Fonder AB lifted its position in MP Materials by 4.0% during the 4th quarter. Handelsbanken Fonder AB now owns 38,800 shares of the company’s stock worth $605,000 after acquiring an additional 1,500 shares in the last quarter. Private Advisor Group LLC lifted its position in shares of MP Materials by 76.5% during the fourth quarter. Private Advisor Group LLC now owns 248,591 shares of the company’s stock worth $3,878,000 after purchasing an additional 107,738 shares in the last quarter. CIBC Asset Management Inc acquired a new stake in MP Materials during the 4th quarter valued at $159,000. Principal Financial Group Inc. increased its stake in MP Materials by 48.7% during the 4th quarter. Principal Financial Group Inc. now owns 899,698 shares of the company’s stock worth $14,035,000 after buying an additional 294,806 shares during the period. Finally, New York State Teachers Retirement System lifted its holdings in MP Materials by 7.3% in the 4th quarter. New York State Teachers Retirement System now owns 99,900 shares of the company’s stock worth $1,558,000 after buying an additional 6,800 shares in the last quarter. Hedge funds and other institutional investors own 52.55% of the company’s stock.

About MP Materials

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.