Quick Summary
- The rare earth materials producer delivered Q4 earnings of $0.09 per share, beating the consensus estimate of $0.08 and dramatically exceeding Zacks’ $0.04 forecast—a +145.23% earnings surprise
- Revenue for the quarter came in at $52.69 million, missing the $76.06 million Street consensus by approximately 11.6%
- The stock climbed 2.3% after the earnings report, touching an intraday high of $60.29, extending year-to-date gains to roughly 16.1%
- Insider selling activity totaled 723,146 shares worth approximately $45.8 million over the past quarter, with both the CEO and CFO participating
- Analysts maintain a consensus “Buy” recommendation with an average price target of $78.91
MP Materials (MP) saw its stock price rise 2.3% on Thursday after the rare earth elements producer reported fourth-quarter 2025 financial results that beat earnings per share expectations.
The stock reached an intraday high of $60.29 before settling near $60.00, up from Wednesday’s closing price of $58.66. Volume stood at approximately 6.55 million shares, roughly 23% below average daily trading activity.
MP Materials delivered adjusted earnings of $0.09 per share for the quarter, topping the Street’s $0.08 consensus and significantly surpassing Zacks’ $0.04 estimate. The result represented a +145.23% positive earnings surprise that drew investor interest.
The performance represents a notable reversal from the year-ago quarter’s loss of $0.12 per share. Over the past year, MP has beaten earnings estimates in three out of four quarters.
Revenue figures, however, disappointed market watchers. The company posted quarterly sales of $52.69 million, falling short of the $76.06 million consensus estimate by about 11.6%. The top-line result also declined from the $60.99 million recorded in the same quarter last year.
Financial metrics show the company currently operates with a net margin of negative 50.55% and return on equity of negative 7.69%, indicators that reflect significant capital expenditure requirements tied to its expansion strategy.
Executive Stock Sales
Corporate insiders have demonstrated active selling behavior in recent months. CFO Ryan Corbett sold 38,146 shares on December 9th at an average price of $60.00, reducing his stake by 19.58%. CEO James Litinsky completed a more substantial sale in January, disposing of 272,600 shares at $64.17 per share in a transaction worth over $17.4 million.
Total insider selling over the trailing three months reached 723,146 shares valued at roughly $45.8 million. Insiders collectively own approximately 9.5% of the company’s outstanding stock.
Conversely, institutional investors have been increasing positions. Corient Private Wealth grew its stake by 404.4% in Q4, while Pacer Advisors increased its holdings by 71.7%. Institutional ownership now accounts for 52.55% of shares outstanding.
Wall Street Outlook
Wall Street analysts remain broadly positive on MP Materials. MarketBeat data shows the consensus recommendation at “Buy,” with an average price target of $78.91—implying substantial upside from current levels.
Goldman Sachs initiated coverage last November with a “Buy” rating and $77.00 price target. Morgan Stanley upgraded the stock to “Overweight” in December, raising its target to $71.00. JPMorgan also moved to “Overweight” in November while trimming its price target slightly to $74.00.
BMO Capital Markets upgraded from “Market Perform” to “Outperform,” while Wall Street Zen provided the sole bearish perspective, downgrading to “Sell” in November.
The current analyst breakdown includes two “Strong Buy” ratings, thirteen “Buy” ratings, and one “Sell” rating.
Year-to-date, MP Materials shares have gained about 16.1%, significantly outpacing the S&P 500’s 1.5% return over the same period.
Looking ahead, the Zacks consensus estimates next quarter’s earnings at $0.07 per share on revenue of $76.36 million. For the full 2026 fiscal year, analysts anticipate earnings of $0.59 per share on total sales of $418.47 million.
Technical indicators show the stock’s 50-day moving average at $59.89, with the 200-day moving average positioned at $64.38. The company commands a market capitalization of $10.63 billion.
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