James H. Litinsky, Chairman and CEO of MP Materials Corp. (NYSE:MP), has sold a significant portion of his holdings in the company. According to a recent filing, Litinsky disposed of 500,000 shares of common stock over two days. The timing is notable as MP Materials trades near its 52-week high of $21.70, with the stock showing strong momentum over the past three months. On November 26, he sold 300,000 shares at a weighted average price of $20.22, while on November 27, he sold an additional 200,000 shares at a weighted average price of $20.90. The total value of these transactions amounts to approximately $10.25 million. Following these sales, Litinsky retains ownership of 17,843,076 shares through his revocable trust in the $3.44 billion market cap company. According to InvestingPro analysis, MP Materials maintains strong liquidity with a current ratio of 6.93, while analyst price targets range from $16 to $30. For deeper insights into insider trading patterns and 14 additional ProTips, subscribers can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, MP Materials has reported significant growth in both earnings and revenue. Following a recent visit to the MP Materials mine, analysts at Canaccord Genuity (TSX:CF) maintained a Buy rating on the company and increased the stock's price target to $26.00. BMO (TSX:BMO) Capital also increased their price target to $19.50, maintaining a Market Perform rating.
In the third quarter, MP Materials reported an adjusted earnings per share of $(0.12), outperforming BMO Capital's estimate of $(0.19). The company also achieved record production of 13.7 kilotonnes of rare earth oxide and 478 tonnes of neodymium-praseodymium. Sales figures remained robust, with a 20% year-over-year revenue increase and an improvement in adjusted EBITDA.
Looking ahead, MP Materials plans to ramp up its Stage 2 operations and expects to achieve positive refining margins in early 2025. The company also aims to initiate metal production by year-end at its Fort Worth facility and start customer qualifications for magnets by the end of 2024. These are among the recent developments that have drawn the attention of analysts.
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