MP Materials Sees Unusually High Options Volume (NYSE:MP)

MP Materials Corp. (NYSE:MP) was the target of some unusual options trading on Friday. Stock traders bought 41,214 call options on the company. This is an increase of approximately 64% compared to the average volume of 25,102 call options.

Analyst Ratings Changes

A number of analysts recently weighed in on MP shares. DA Davidson restated a “buy” rating and issued a $82.00 target price on shares of MP Materials in a research report on Monday, August 24th. Morgan Stanley reduced their price target on shares of MP Materials from $73.00 to $66.00 and set an “overweight” rating on the stock in a research report on Wednesday, October 7th. Robert W. Baird decreased their price target on shares of MP Materials from $80.00 to $65.00 and set an “outperform” rating on the stock in a research note on Thursday, October 1st. Wall Street Zen upgraded shares of MP Materials from a “sell” rating to a “hold” rating in a report on Saturday, November 7th. Finally, Barclays lowered their price objective on shares of MP Materials from $65.00 to $54.00 and set an “overweight” rating for the company in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, MP Materials presently has an average rating of “Moderate Buy” and an average price target of $69.50.

MP Materials Trading Up 2.6%

Shares of NYSE:MP traded up $0.97 during trading on Friday, reaching $38.42. 4,521,501 shares of the company traded hands, compared to its average volume of 6,380,045. The company has a current ratio of 6.75, a quick ratio of 6.04 and a debt-to-equity ratio of 0.48. MP Materials has a 52-week low of $31.90 and a 52-week high of $76.80. The firm has a market capitalization of $6.84 billion, a price-to-earnings ratio of -174.96 and a beta of 2.05. The business’s fifty day moving average is $44.22 and its 200-day moving average is $53.85.

MP Materials (NYSE:MP) last issued its earnings results on Thursday, November 5th. The company reported $0.04 EPS for the quarter, topping the consensus estimate of ($0.02) by $0.06. MP Materials had a negative net margin of 9.90% and a negative return on equity of 0.05%. The company had revenue of $147.66 million for the quarter, compared to the consensus estimate of $117.37 million. During the same period in the previous year, the firm earned ($0.10) earnings per share. The firm’s revenue for the quarter was up 175.7% on a year-over-year basis. As a group, analysts forecast that MP Materials will post -0.21 EPS for the current year.

Key Stories Impacting MP Materials

These are some of the MP stories that stood out recently:

• Positive Sentiment: Executives and a director bought a combined roughly $3.35 million of MP shares this week, a signal of insider confidence. The purchases followed the start of saleable magnet shipments to General Motors. MP Materials Stock Rises After Insiders Buy $3.35 Million
• Positive Sentiment: A recent Q3 review highlighted revenue growth of about 176%, driven by higher NdPr prices, increased sales volumes and heavy rare earth sales. The quarter also beat analyst estimates, though the results were reported last week. MP’s Q3 Revenues Jump 176%
• Negative Sentiment: Investors still face questions about whether the sharp revenue growth can continue and whether the share valuation already reflects much of the growth outlook. A separate report also said the federal government’s $400 million equity stake could face renewed scrutiny. MP Materials Faces Review of Federal Stake

Insider Activity at MP Materials

In other news, Director Randall J. Weisenburger purchased 55,000 shares of the company’s stock in a transaction on Tuesday, November 10th. The stock was purchased at an average price of $36.00 per share, with a total value of $1,980,000.00. Following the completion of the purchase, the director directly owned 205,899 shares in the company, valued at approximately $7,412,364. This trade represents a 36.45% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Rosenthal acquired 27,000 shares of the business’s stock in a transaction dated Tuesday, November 10th. The stock was purchased at an average price of $36.61 per share, with a total value of $988,470.00. Following the completion of the acquisition, the chief operating officer directly owned 1,360,673 shares in the company, valued at approximately $49,814,238.53. This represents a 2.02% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 92,476 shares of company stock valued at $3,353,475 over the last 90 days. 8.20% of the stock is owned by insiders.

Hedge Funds Weigh In On MP Materials

Several hedge funds and other institutional investors have recently modified their holdings of the company. Toth Financial Advisory Corp grew its stake in shares of MP Materials by 73.3% in the second quarter. Toth Financial Advisory Corp now owns 520 shares of the company’s stock worth $29,000 after purchasing an additional 220 shares during the last quarter. Wedmont Private Capital increased its holdings in MP Materials by 2.0% during the 3rd quarter. Wedmont Private Capital now owns 11,866 shares of the company’s stock valued at $547,000 after purchasing an additional 234 shares during the period. Allworth Financial LP raised its position in MP Materials by 4.5% during the 2nd quarter. Allworth Financial LP now owns 5,679 shares of the company’s stock valued at $318,000 after purchasing an additional 243 shares during the last quarter. NFSG Corp raised its position in MP Materials by 5.0% during the 1st quarter. NFSG Corp now owns 5,387 shares of the company’s stock valued at $260,000 after purchasing an additional 255 shares during the last quarter. Finally, Putney Financial Group LLC raised its position in MP Materials by 4.4% during the 3rd quarter. Putney Financial Group LLC now owns 6,123 shares of the company’s stock valued at $290,000 after purchasing an additional 257 shares during the last quarter. 52.55% of the stock is owned by institutional investors.

MP Materials Company Profile

MP Materials operates the Mountain Pass rare earth mine and processing facility in California. The site is a major North American source of rare earth materials, which are used in products such as electric vehicles, wind turbines, electronics and defense systems. The company mines and processes rare earth ore into concentrate and separated products, including neodymium-praseodymium (NdPr), a key input for high-strength permanent magnets. MP Materials is also developing domestic magnet manufacturing capabilities to extend its business further along the supply chain.