MP Materials (NYSE:MP) Shares Down 4.8% – Here’s What Happened

MP Materials Corp. (NYSE:MP)’s stock price fell 4.8% during mid-day trading on Tuesday . The company traded as low as $49.25 and last traded at $50.4740. 6,797,738 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 6,719,926 shares. The stock had previously closed at $53.01.

More MP Materials News

Here are the key news stories impacting MP Materials this week:

• Positive Sentiment: Morgan Stanley raised its price target on MP Materials to $71.50 from $70 and kept an overweight rating, signaling confidence in additional upside for the shares. MP Materials price target raised by Morgan Stanley
• Positive Sentiment: Deutsche Bank lowered its target to $61 from $70 but still maintained a buy rating, implying analysts continue to see meaningful upside from current levels. MP Materials price target lowered by Deutsche Bank Aktiengesellschaft
• Neutral Sentiment: Industry coverage notes a rare-earth talent crunch could slow the U.S. supply-chain rebuild, a backdrop that supports MP’s strategic importance but also suggests execution challenges ahead. Rare Earth Talent Crunch Could Slow US Supply Chain Rebuild
• Negative Sentiment: MP Materials filed a lawsuit against USA Rare Earth, accusing it of stealing proprietary magnet technology and unlawfully recruiting key engineers, which introduces legal uncertainty and underscores competitive pressure in the sector. MP Materials (MP) Sues USA Rare Earth Over Magnet Technology And Engineer Hiring
• Negative Sentiment: Separate business coverage also highlighted the same trade-secrets dispute, keeping attention on litigation risk rather than operations or growth catalysts. MP Materials sues competitor over trade secrets in Fort Worth Business Court

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Needham & Company LLC began coverage on shares of MP Materials in a report on Monday, June 1st. They set a “buy” rating and a $81.00 price objective on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MP Materials in a research report on Tuesday, April 21st. Barclays initiated coverage on shares of MP Materials in a research note on Thursday, May 21st. They set an “overweight” rating and a $69.00 price target on the stock. DA Davidson reiterated a “buy” rating and issued a $82.00 price target on shares of MP Materials in a report on Friday, June 5th. Finally, Canaccord Genuity Group set a $82.00 price objective on shares of MP Materials in a research note on Friday, May 8th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $79.54.

MP Materials Stock Down 2.3%

The firm has a market capitalization of $9.22 billion, a price-to-earnings ratio of -122.93 and a beta of 1.86. The company has a current ratio of 7.18, a quick ratio of 6.58 and a debt-to-equity ratio of 0.47. The firm has a 50 day moving average price of $60.67 and a two-hundred day moving average price of $59.41.

MP Materials (NYSE:MP) last posted its earnings results on Thursday, May 7th. The company reported $0.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.04. MP Materials had a negative net margin of 28.00% and a negative return on equity of 2.27%. The firm had revenue of $90.65 million during the quarter, compared to the consensus estimate of $74.82 million. During the same quarter in the prior year, the company earned ($0.12) EPS. The company’s revenue was up 49.1% on a year-over-year basis. On average, equities analysts expect that MP Materials Corp. will post -0.04 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Michael Stuart Rosenthal bought 17,000 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The stock was bought at an average price of $56.62 per share, with a total value of $962,540.00. Following the completion of the transaction, the chief operating officer directly owned 1,333,673 shares of the company’s stock, valued at approximately $75,512,565.26. This represents a 1.29% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO James H. Litinsky sold 259,179 shares of the stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $64.03, for a total value of $16,595,231.37. Following the completion of the sale, the chief executive officer owned 12,505,965 shares of the company’s stock, valued at approximately $800,756,938.95. This trade represents a 2.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,205,167 shares of company stock worth $79,371,654 over the last quarter. 8.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Private Advisory Group LLC purchased a new position in MP Materials in the fourth quarter valued at about $9,702,000. Polianta Ltd purchased a new stake in MP Materials during the 4th quarter worth approximately $1,227,000. Dorsey Wright & Associates raised its position in shares of MP Materials by 84.1% in the 3rd quarter. Dorsey Wright & Associates now owns 118,252 shares of the company’s stock valued at $7,931,000 after purchasing an additional 54,031 shares in the last quarter. MH & Associates Securities Management Corp ADV purchased a new position in shares of MP Materials during the 4th quarter valued at approximately $1,184,000. Finally, Leonteq Securities AG purchased a new position in shares of MP Materials during the 4th quarter valued at approximately $2,451,000. 52.55% of the stock is owned by institutional investors and hedge funds.

About MP Materials

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.