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NYSE:MP

MP Materials (MP) Stock Price, News & Analysis

MP Materials logo
$18.55 +0.32 (+1.76%)
(As of 11:15 AM ET)

About MP Materials Stock (NYSE:MP)

Key Stats

Today's Range
$18.01
$18.58
50-Day Range
$13.79
$20.43
52-Week Range
$10.02
$20.85
Volume
352,257 shs
Average Volume
3.22 million shs
Market Capitalization
$3.03 billion
P/E Ratio
N/A
Dividend Yield
N/A
Price Target
$21.40
Consensus Rating
Moderate Buy

Company Overview

MP Materials Corp. is a company that has rapidly become a leading provider of rare earth materials. These materials are essential to numerous industries, including electric vehicles, wind turbines, and consumer electronics. With its headquarters in Las Vegas, Nevada, MP Materials Corp. operates the only rare earth mining and processing site in North America, in Mountain Pass, California.

The company was founded in 2017 as a special purpose acquisition company and merged with MP Materials, which acquired the Mountain Pass site from the bankruptcy of Molycorp. Since the merger, the company has successfully increased production levels. In 2020, it went public through a SPAC merger with Fortress Value Acquisition Corp, now trading on the NYSE under the ticker MP.

MP Materials' management team is led by Chief Executive Officer James Litinsky, who has over two decades of experience in the financial industry. James Litinsky is a former hedge fund manager with a restructuring and value investing background. He previously worked as a hedge fund manager at JHL Capital Group and recently served as the CEO of commercial real estate company CIVANA.

As for financial performance, MP Materials has consistently grown over the past few years. In 2022, the company generated $527 million in revenue, up from $67 million in 2018. The company also reported a net income of $289 million in 2022, compared to a net loss of $34 million in 2019. The company's gross margin increased from 6% in 2018 to 82% in 2022, reflecting the company's successful cost management strategies. In comparison, the sector media gross margin is about 30%. MP Materials has also worked hard to reduce its debt levels, primarily incurred through acquiring the Mountain Pass site.

Regarding valuation, MP Materials' stock is currently trading at a price-to-earnings ratio higher than the industry average and a price-to-book lower than the industry average, indicating that the company's shares are relatively undervalued compared to its peers. The company's stock has been volatile since going public in 2020. In the first few months of trading, the stock price increased by over 300%, driven by investor enthusiasm for rare earth materials and the company's position as North America's only rare earth mining and processing site. However, the stock has since experienced significant price fluctuations, reflecting the volatility of the broader stock market.

MP Materials operates in the broader rare earth materials industry, heavily influenced by global supply and demand trends. The industry is dominated by Chinese companies, which control over 80% of the worldwide supply of rare earth materials. However, in recent years, there has been a growing demand for alternative sources of rare earth materials, particularly in the United States and Europe. This has created opportunities for companies like MP Materials to expand their market share and capture a more significant portion of the industry's growth potential.

The rare earth materials industry has recently faced regulatory and political challenges, particularly concerning trade tensions between the United States and China. In 2019, China threatened to limit exports of rare earth materials to the United States, which would have had significant implications for the U.S. economy and national security. However, in response, the U.S. government has encouraged domestic production of rare earth materials and reduced reliance on foreign sources. This has created a favorable regulatory environment for companies like MP Materials, which are positioned to benefit from increased government support and investment in the industry.

MP Materials has identified several growth opportunities in the rare earth materials industry. One potential avenue for growth is developing new products and applications for rare earth materials. The company has already developed a proprietary process for extracting rare earth materials from waste streams, which could have significant environmental and economic benefits. MP Materials is also exploring opportunities to expand its production capacity and enter new markets, particularly in the Asia-Pacific region.

Despite these opportunities, MP Materials faces several risks and challenges. The company relies heavily on demand for rare earth materials, which can fluctuate significantly based on global economic conditions and geopolitical tensions. Additionally, the company's reliance on a single mining and processing site in Mountain Pass, California, exposes it to operational risks and potential disruptions.

Furthermore, MP Materials faces competition from established companies in the rare earth materials industry and new entrants seeking to capture a share of the market's growth potential. The company must continue to innovate and differentiate itself to maintain its competitive position in the industry.

MP Materials Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
57th Percentile Overall Score

MP MarketRank™: 

MP Materials scored higher than 57% of companies evaluated by MarketBeat, and ranked 114th out of 189 stocks in the basic materials sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    MP Materials has received a consensus rating of Moderate Buy. The company's average rating score is 2.60, and is based on 6 buy ratings, 4 hold ratings, and no sell ratings.

  • Amount of Analyst Coverage

    MP Materials has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about MP Materials' stock forecast and price target.
  • Earnings Growth

    Earnings for MP Materials are expected to grow in the coming year, from ($0.54) to ($0.18) per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of MP Materials is -34.24, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of MP Materials is -34.24, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

  • Price to Book Value per Share Ratio

    MP Materials has a P/B Ratio of 2.84. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

  • Read more about MP Materials' valuation and earnings.
  • Percentage of Shares Shorted

    18.20% of the float of MP Materials has been sold short.
  • Short Interest Ratio / Days to Cover

    MP Materials has a short interest ratio ("days to cover") of 7.2.
  • Change versus previous month

    Short interest in MP Materials has recently decreased by 16.67%, indicating that investor sentiment is improving significantly.
  • Dividend Yield

    MP Materials does not currently pay a dividend.

  • Dividend Growth

    MP Materials does not have a long track record of dividend growth.

  • Percentage of Shares Shorted

    18.20% of the float of MP Materials has been sold short.
  • Short Interest Ratio / Days to Cover

    MP Materials has a short interest ratio ("days to cover") of 7.2.
  • Change versus previous month

    Short interest in MP Materials has recently decreased by 16.67%, indicating that investor sentiment is improving significantly.
  • News Sentiment

    MP Materials has a news sentiment score of 0.64. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.52 average news sentiment score of Basic Materials companies.
  • News Coverage This Week

    MarketBeat has tracked 9 news articles for MP Materials this week, compared to 6 articles on an average week.
  • Search Interest

    Only 17 people have searched for MP on MarketBeat in the last 30 days. This is a decrease of -11% compared to the previous 30 days.
  • MarketBeat Follows

    Only 3 people have added MP Materials to their MarketBeat watchlist in the last 30 days. This is a decrease of -63% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, MP Materials insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,813,068.00 in company stock.

  • Percentage Held by Insiders

    12.60% of the stock of MP Materials is held by insiders. A high percentage of insider ownership can be a sign of company health.

  • Percentage Held by Institutions

    52.55% of the stock of MP Materials is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about MP Materials' insider trading history.
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MP Stock News Headlines

MP Materials Corp. (NYSE:MP) CEO Sells $5,535,000.00 in Stock
Tesla Execs are Freaking Out
It’s so revolutionary that tech giants like Microsoft, Amazon, and NVIDIA are all lining up to get their hands on it. And Elon Musk has completely restructured Tesla to chase this opportunity. This is a once-in-a-lifetime opportunity that you don’t want to miss.
See More Headlines

MP Stock Analysis - Frequently Asked Questions

MP Materials' stock was trading at $19.85 at the beginning of 2024. Since then, MP shares have decreased by 6.9% and is now trading at $18.49.
View the best growth stocks for 2024 here
.

MP Materials Corp. (NYSE:MP) released its quarterly earnings results on Thursday, August, 1st. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of ($0.09) by $0.08. The firm's revenue for the quarter was down 51.2% compared to the same quarter last year.

MP Materials' board approved a share buyback plan on Tuesday, September 3rd 2024, which permits the company to repurchase $300,000,000 in outstanding shares, according to EventVestor. This means that the company could purchase up to 13.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its shares are undervalued.

Top institutional investors of MP Materials include State Street Corp (4.04%), Baillie Gifford & Co. (1.67%), Victory Capital Management Inc. (1.43%) and Van ECK Associates Corp (1.41%). Insiders that own company stock include James H Litinsky, Michael Stuart Rosenthal, Daniel Allen Gold, Financial Lp Qvt, Ryan Corbett, Randall J Weisenburger, Andrew A Mcknight, Connie K Duckworth and Elliot Dean Hoops.
View institutional ownership trends
.

Shares of MP stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that MP Materials investors own include Tesla (TSLA), NVIDIA (NVDA), Broadcom (AVGO), IDEXX Laboratories (IDXX), Meta Platforms (META), Advanced Micro Devices (AMD) and Applied Materials (AMAT).

Company Calendar

Last Earnings
8/01/2024
Today
11/21/2024
Fiscal Year End
12/31/2024
Next Earnings (Estimated)
2/27/2025

Industry, Sector and Symbol

Industry
Metal mining
Sub-Industry
Non-Metallic And Industrial Metal Mining
Fax
N/A
Employees
490
Year Founded
N/A

Price Target and Rating

Average Stock Price Target
$21.40
High Stock Price Target
$30.00
Low Stock Price Target
$12.50
Potential Upside/Downside
+17.4%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.60
Research Coverage
10 Analysts

Profitability

Net Income
$24.31 million
Pretax Margin
-43.48%

Debt

Sales & Book Value

Annual Sales
$253.45 million
Cash Flow
$0.61 per share
Book Value
$7.67 per share

Miscellaneous

Free Float
142,643,000
Market Cap
$2.98 billion
Optionable
Optionable
Beta
2.23
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This page (NYSE:MP) was last updated on 11/21/2024 by MarketBeat.com Staff
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