MP Materials Corp. (NYSE:MP) shares are trading down on Monday. Here’s a look at what’s going on.
MP Investors Eye Competitive Landscape
MP Materials shares are volatile after USA Rare Earth announced a letter of intent for a potential $1.6 billion investment by the Trump administration, which could impact the competitive landscape for rare earth materials.
This news has stirred investor sentiment, leading to increased scrutiny of MP Materials’ market position. The stock has experienced significant growth over the past year thanks to increased attention to domestic mining.
In July last year, the U.S. government acquired a substantial 15% stake in MP Materials Corp. This move instantly ignited a 60% intraday surge and has since propelled the stock to gain over 100%.
The broader market is experiencing gains on Monday, with the S&P 500 up approximately 0.57% and the Materials sector gaining 0.56%. Despite this positive environment, MP Materials is underperforming.
MP Is Seeing Mixed Momentum
The stock is currently trading 4.2% above its 20-day simple moving average (SMA) but is 1% below its 100-day SMA, indicating some short-term strength while struggling to maintain momentum in the longer term. Over the past 12 months, shares have increased by an impressive 196.67%, and they are currently positioned closer to their 52-week highs than lows, reflecting a strong upward trend over the past year.
The RSI is at 63.54, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is above its signal line, indicating bullish momentum.
The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $64.00
- Key Support: $53.00
What Does MP Materials Do?
MP Materials is the producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company is also developing a rare earth metal, alloy, and magnet manufacturing facility in Fort Worth, Texas.
This positioning is crucial as the demand for rare earth materials continues to grow, particularly in sectors like electric vehicles and renewable energy. The recent news regarding potential investments in competitors highlights the competitive pressures MP Materials faces in maintaining its market share.
Earnings and Analyst Outlook
Investors are looking ahead to the next earnings report on Feb. 19.
- EPS Estimate: $0.05 (Up from Loss of 12 cents YoY)
- Revenue Estimate: $69.98 million (Up from $60.99 million YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $61.07. Recent analyst moves include:
- William Blair: Initiated with Outperform (Jan. 13)
- Morgan Stanley: Upgraded to Overweight (Raises Target to $71.00) (Dec. 5, 2025)
- BMO Capital: Upgraded to Outperform (Lowers Target to $75.00) (Nov. 24, 2025)
MP Shares Move Lower
MP Price Action: MP Materials Corp shares were down 7.11% at $64.63 during regular trading hours on Monday, according to Benzinga Pro. Shares traded as high as $72.93 on Monday before pulling back.
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