MP Materials (NYSE:MP) Trading 6.4% Higher Following Better-Than-Expected Earnings

MP Materials Corp. (NYSE:MP) traded up 6.4% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $79.36 and last traded at $75.64. 12,275,017 shares changed hands during mid-day trading, an increase of 36% from the average session volume of 9,020,296 shares. The stock had previously closed at $71.07.

The company reported ($0.13) EPS for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.03. MP Materials had a negative return on equity of 9.25% and a negative net margin of 41.87%. The company had revenue of $57.39 million during the quarter, compared to analysts’ expectations of $44.84 million. During the same period last year, the business posted ($0.17) earnings per share. The firm’s revenue was up 83.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

MP has been the topic of several analyst reports. Jefferies Financial Group raised MP Materials from a “hold” rating to a “buy” rating and set a $80.00 target price on the stock in a report on Friday, August 1st. Wall Street Zen raised MP Materials from a “sell” rating to a “hold” rating in a report on Saturday, July 26th. Morgan Stanley set a $65.00 target price on MP Materials and gave the stock an “equal weight” rating in a report on Thursday, July 31st. Cowen reaffirmed a “buy” rating on shares of MP Materials in a report on Friday. Finally, Canaccord Genuity Group raised their target price on MP Materials from $64.00 to $77.00 and gave the stock a “buy” rating in a report on Friday. Five analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $60.63.

Hedge Funds Weigh In On MP Materials

A number of institutional investors have recently added to or reduced their stakes in MP. Highline Wealth Partners LLC purchased a new stake in MP Materials in the second quarter valued at $25,000. AdvisorNet Financial Inc raised its position in MP Materials by 168.7% in the second quarter. AdvisorNet Financial Inc now owns 806 shares of the company’s stock valued at $27,000 after purchasing an additional 506 shares during the period. Spire Wealth Management raised its position in MP Materials by 181.3% in the second quarter. Spire Wealth Management now owns 1,010 shares of the company’s stock valued at $34,000 after purchasing an additional 651 shares during the period. NBC Securities Inc. raised its position in MP Materials by 119,900.0% in the first quarter. NBC Securities Inc. now owns 1,200 shares of the company’s stock valued at $29,000 after purchasing an additional 1,199 shares during the period. Finally, Harbour Investments Inc. raised its position in MP Materials by 32.9% in the second quarter. Harbour Investments Inc. now owns 1,220 shares of the company’s stock valued at $41,000 after purchasing an additional 302 shares during the period. Hedge funds and other institutional investors own 52.55% of the company’s stock.

MP Materials Price Performance

The company has a quick ratio of 3.58, a current ratio of 4.12 and a debt-to-equity ratio of 0.81. The company has a market cap of $12.15 billion, a PE ratio of -117.97 and a beta of 2.30. The stock has a 50-day simple moving average of $44.20 and a 200 day simple moving average of $30.77.

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.