MP Materials (NYSE:MP) Shares Down 5.2% – Here’s Why

MP Materials Corp. (NYSE:MP)’s share price traded down 5.2% during trading on Friday. The company traded as low as $38.49 and last traded at $39.46. 5,293,274 shares traded hands during trading, a decline of 16% from the average session volume of 6,337,359 shares. The stock had previously closed at $41.64.

Trending Headlines about MP Materials

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

• Positive Sentiment: MP’s long-term outlook continues to benefit from its Pentagon agreement, which includes a 10-year price floor for neodymium-praseodymium products, financing and purchase commitments connected to expanding U.S. magnet production. The support could improve revenue visibility and reduce commodity-price risk. Should You Buy MP Materials Stock at $38?
• Neutral Sentiment: InvestorPlace highlighted MP as a government-backed “Trump stock,” but cautioned that federal support for production economics is not a floor under the stock price. Investors may therefore be reassessing how much of the government-policy premium is already reflected in MP’s valuation, particularly ahead of the November midterm elections. Do This Before You Buy Another Trump Stock
• Negative Sentiment: MP Materials fell alongside other rare-earth shares as traders adopted a risk-off stance. The selloff was part of broader weakness in the group, rather than a company-specific announcement, but it underscores the sector’s high volatility. Rare-Earth Stocks Slide
• Negative Sentiment: Analysts expect another negative earnings report next week, and Zacks says MP does not currently show the combination of earnings and estimate-revision trends typically associated with a likely earnings beat. With the company still unprofitable, earnings uncertainty is adding to selling pressure. MP Materials May Report Negative Earnings

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Citigroup reissued a “positive” rating on shares of MP Materials in a report on Wednesday, July 15th. Freedom Broker assumed coverage on MP Materials in a research note on Wednesday, September 16th. They set a “hold” rating and a $57.00 price target for the company. Needham & Company LLC reduced their price target on shares of MP Materials from $81.00 to $73.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. Robert W. Baird reduced their price target on shares of MP Materials from $80.00 to $65.00 and set an “outperform” rating for the company in a research report on Thursday, October 1st. Finally, DA Davidson reiterated a “buy” rating and issued a $82.00 price objective on shares of MP Materials in a research note on Monday, August 24th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $71.92.

MP Materials Trading Down 5.2%

The stock has a fifty day simple moving average of $47.95 and a 200 day simple moving average of $55.22. The company has a quick ratio of 8.56, a current ratio of 9.51 and a debt-to-equity ratio of 0.48. The firm has a market capitalization of $7.03 billion, a P/E ratio of -116.06 and a beta of 1.98.

MP Materials (NYSE:MP) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.01) earnings per share for the quarter, hitting the consensus estimate of ($0.01). The business had revenue of $108.49 million during the quarter, compared to the consensus estimate of $96.89 million. MP Materials had a negative return on equity of 1.21% and a negative net margin of 19.85%. The firm’s revenue for the quarter was up 89.0% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.13) EPS. As a group, research analysts forecast that MP Materials Corp. will post -0.20 EPS for the current year.

Hedge Funds Weigh In On MP Materials

Several institutional investors have recently bought and sold shares of the business. State Street Corp lifted its position in MP Materials by 5.1% in the second quarter. State Street Corp now owns 7,773,746 shares of the company’s stock worth $435,408,000 after buying an additional 376,519 shares during the last quarter. Bank of New York Mellon Corp bought a new position in MP Materials in the 2nd quarter worth about $65,230,000. Principal Financial Group Inc. increased its holdings in MP Materials by 32.4% during the 1st quarter. Principal Financial Group Inc. now owns 919,083 shares of the company’s stock worth $44,355,000 after purchasing an additional 225,009 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in MP Materials by 1.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 564,808 shares of the company’s stock worth $31,635,000 after acquiring an additional 8,556 shares during the period. Finally, First Trust Advisors LP boosted its stake in shares of MP Materials by 1.7% during the first quarter. First Trust Advisors LP now owns 518,108 shares of the company’s stock valued at $25,004,000 after purchasing an additional 8,663 shares in the last quarter. Institutional investors own 52.55% of the company’s stock.

MP Materials Company Profile

MP Materials Corp. is a rare earth materials company focused on restoring and expanding a fully integrated rare earth supply chain in the United States. The company owns and operates the Mountain Pass rare earth mine and processing facility in California, one of the largest rare earth production sites in the Western Hemisphere.

MP Materials primarily produces rare earth concentrate containing neodymium and praseodymium, elements used in high-strength permanent magnets. These magnets are important components in electric vehicles, wind turbines, robotics, defense systems, and other advanced technologies.