MP Materials Corp. (NYSE: MP) stock jumped 5.24% on Tuesday to $33.76 against a previous-day closing price of $32.08. With 1.53 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.93 million shares. During the session, the Other Industrial Metals & Mining company that operates in wider Basic Materials sector, reached to the highest price of $33.76 whereas the lowest price it dropped to was $32.28. The 52-week range on MP shows that it touched its highest point at $60.19 and its lowest point at $26.19 during that stretch. It currently has a 1-year price target of $44.79.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MP was down-trending over the past week, with a drop of -4.52%, but this was up by 12.61% over a month. Three-month performance dropped to -9.15% while six-month performance fell -8.31%. The stock lost -18.51% in the past year, while it has lost -25.67% so far this year. A look at the trailing 12-month EPS for MP yields 1.42 with Next year EPS estimates of 1.27. For the next quarter, that number is 0.18. This implies an EPS growth rate of 359.70% for this year and -11.90% for next year.
Float and Shares Shorts:
At present, 176.54 million MP shares are outstanding with a float of 144.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.26 million, which was 6.90% higher than short shares on Sep 14, 2022. In addition to Mr. James Henry Litinsky J.D. as the firm’s Chairman, Pres & CEO, Mr. Ryan S. Corbett serves as its Chief Financial Officer.
Through their ownership of 60.39% of MP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.75% of MP, in contrast to 40.04% held by mutual funds. Shares owned by individuals account for 20.43%. As the largest shareholder in MP with 16.10% of the stake, JHL Capital Group LLC holds 28,573,349 shares worth 28,573,349. A second-largest stockholder of MP, QVT Financial LP, holds 13,655,280 shares, controlling over 7.69% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in MP, holding 8,857,500 shares or 4.99% stake. With a 1.65% stake in MP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,928,501 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 1.56% of MP stock, is the second-largest Mutual Fund holder. It holds 2,775,351 shares valued at 83.37 million. Vanguard Small Cap Index Fund holds 1.42% of the stake in MP, owning 2,519,285 shares worth 75.68 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MP since 13 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MP analysts setting a high price target of $56.00 and a low target of $36.00, the average target price over the next 12 months is $44.79. Based on these targets, MP could surge 65.88% to reach the target high and rise by 6.64% to reach the target low. Reaching the average price target will result in a growth of 32.67% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MP will report FY 2022 earnings on 03/16/2023. Analysts have provided yearly estimates in a range of $1.59 being high and $1.30 being low. For MP, this leads to a yearly average estimate of $1.43. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. MP Materials Corp. surprised analysts by $0.07 when it reported $0.36 EPS against a consensus estimate of $0.29. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.24 and the low estimate is $0.06. The average estimate for the next quarter is thus $0.18.
Summary of Insider Activity:
Insiders traded MP stock several times over the past three months with 3 Buys and 124 Sells. In these transactions, 1,990 shares were bought while 15,753,778 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 329 over the past year. The total number of shares bought during that period was 245,408 while 40,892,711 shares were sold.