MP Materials (NYSE: MP) shares rose 2.88% to $38.53 on Friday, extending the week’s gains as company insiders bought about $3.35 million in shares and the rare-earth producer reported stronger third-quarter results and progress in its magnet business. The stock outperformed a weaker market: the Nasdaq fell 1.99%, the S&P 500 lost 0.85%, and the materials sector slipped about 0.2%.
Three insiders bought 92,476 shares
Regulatory disclosures show that Chief Financial Officer Ryan Corbett bought 5,476 shares worth about $198,500. Director Randall Weisenburger purchased 55,000 shares, valued at roughly $1.98 million, while Chief Operating Officer Michael Rosenthal bought 32,000 shares worth about $1.18 million. Together, the three acquired 92,476 shares on Nov. 10 and 11.
Insider purchases can attract investor attention as a possible indication of management confidence, but a single round of buying does not establish how the company or its shares will perform. The size of the transactions should be considered alongside MP Materials’ operating results and business progress.
Third-quarter revenue rose 176% year over year
MP Materials reported third-quarter revenue of $147.66 million, up 176% from a year earlier and above the Wall Street estimate of $117.47 million. Earnings were 4 cents per share, compared with analysts’ expectation of a 2-cent loss. Cash and short-term investments stood at about $1.34 billion at quarter-end.
CEO James Litinsky said the company had completed the qualification process for General Motors. That clears a step toward commercial magnet shipments, which MP Materials expects to begin generating shipments and revenue from in the fourth quarter. Investors are watching whether the magnet business can deliver commercial revenue on schedule as the company expands beyond rare-earth production.
Analysts maintain ratings but cut price targets
The consensus analyst rating is “Buy,” with an average price target of $65.33. Several firms have recently lowered their targets while keeping their ratings unchanged. Canaccord Genuity reiterated “Buy” on Nov. 9 and cut its target to $70. Barclays maintained “Overweight” and reduced its target to $54. Morgan Stanley reiterated “Overweight” on Oct. 7 and lowered its target to $66.
Shares remain below 50- and 200-day averages
Despite Friday’s advance, MP Materials shares remained below their 50-day and 200-day simple moving averages, at $43.93 and $53.72, respectively. The stock was slightly above its 20-day average of $38.16. The relative strength index was 46.16, in neutral territory, while the momentum score was 5.76. Market participants were watching resistance near $42.50 and support around $37.50. These figures describe the stock’s technical position at the time and do not, on their own, indicate its future direction.