MP Materials (NYSE:MP) Hits New 1-Year High – Time to Buy?

MP Materials Corp. (NYSE:MP)’s share price hit a new 52-week high on Monday . The stock traded as high as $21.04 and last traded at $20.88, with a volume of 838626 shares trading hands. The stock had previously closed at $19.64.

Analyst Upgrades and Downgrades

MP has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft decreased their price target on MP Materials from $13.50 to $12.50 and set a “hold” rating on the stock in a research report on Tuesday, August 6th. JPMorgan Chase & Co. raised their target price on MP Materials from $15.00 to $18.00 and gave the company a “neutral” rating in a research note on Monday, October 21st. BMO Capital Markets upped their price target on shares of MP Materials from $16.00 to $18.50 and gave the stock a “market perform” rating in a research report on Friday, October 25th. Benchmark restated a “buy” rating and issued a $30.00 price objective on shares of MP Materials in a research report on Friday, August 2nd. Finally, Canaccord Genuity Group reduced their target price on shares of MP Materials from $20.00 to $19.00 and set a “buy” rating on the stock in a research report on Tuesday, August 27th. Four analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, MP Materials presently has an average rating of “Moderate Buy” and a consensus target price of $21.40.

MP Materials Stock Up 6.2 %

The company has a debt-to-equity ratio of 0.88, a current ratio of 6.93 and a quick ratio of 6.13. The firm has a 50-day moving average of $17.74 and a 200 day moving average of $15.38. The stock has a market capitalization of $3.40 billion, a price-to-earnings ratio of -36.37 and a beta of 2.23.

MP Materials announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, September 3rd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the company to buy up to 13.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, CFO Ryan Corbett sold 15,195 shares of the company’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $18.30, for a total transaction of $278,068.50. Following the completion of the sale, the chief financial officer now directly owns 295,021 shares in the company, valued at approximately $5,398,884.30. This represents a 4.90 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO James H. Litinsky sold 300,000 shares of the company’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $18.45, for a total transaction of $5,535,000.00. Following the sale, the chief executive officer now directly owns 18,221,776 shares of the company’s stock, valued at $336,191,767.20. This represents a 1.62 % decrease in their position. The disclosure for this sale can be found here. 12.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of MP. GAMMA Investing LLC increased its position in MP Materials by 136.0% in the 3rd quarter. GAMMA Investing LLC now owns 2,230 shares of the company’s stock valued at $39,000 after acquiring an additional 1,285 shares during the period. Nisa Investment Advisors LLC increased its holdings in MP Materials by 3,803.8% in the second quarter. Nisa Investment Advisors LLC now owns 4,060 shares of the company’s stock valued at $52,000 after purchasing an additional 3,956 shares during the period. Signaturefd LLC raised its position in MP Materials by 817.5% during the 3rd quarter. Signaturefd LLC now owns 3,661 shares of the company’s stock worth $65,000 after purchasing an additional 3,262 shares during the last quarter. Point72 Hong Kong Ltd acquired a new position in MP Materials during the 2nd quarter worth about $72,000. Finally, KBC Group NV grew its position in shares of MP Materials by 35.7% in the 3rd quarter. KBC Group NV now owns 4,733 shares of the company’s stock valued at $84,000 after buying an additional 1,246 shares during the last quarter. 52.55% of the stock is currently owned by institutional investors and hedge funds.

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.