MP Materials Stock Slumps 1.62 as Trading Volume Falls in Daily Rankings Amid Rare Earth Mining Strategic Shifts

MP Materials (NYSE:MP) fell 1.62% on August 20, with a trading volume of 5.97 million shares, marking a 27.97% decline in turnover compared to the previous day. The stock closed at $68.06, reflecting continued investor caution amid mixed market signals.

Analyst sentiment remains cautiously optimistic, with a "Moderate Buy" consensus rating supported by five buy and four hold recommendations. Recent upgrades from Jefferies and Canaccord Genuity highlight confidence in the company’s rare earth mining operations. However, short interest has decreased by 21.55% month-on-month, suggesting improving sentiment despite lingering risks from a -108.23 P/E ratio and negative net margins.

Institutional ownership remains strong at 52.55%, with hedge funds like AdvisorNet Financial and NBC Securities increasing stakes in Q1 and Q2. The company’s Mountain Pass Rare Earth mine continues to draw strategic interest, particularly amid global supply chain shifts. Recent quarterly earnings beat estimates, reporting -$0.13 EPS on $57.39 million revenue, a 83.6% year-over-year increase.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day from 2022 to 2025 yielded a 0.98% average daily return, with a total cumulative return of 31.52% over 365 days. This suggests limited short-term momentum capture amid market volatility and timing risks.