MP Materials Corp. (MP) Down 5.6% — Time to Fold This Position?
MP Materials Corp. (MP) continued to lose ground in the latest session, with shares closing at $56.66, down 5.58% from the prior close of $60.01. That move represents a decline of $3.35 in a single day, underscoring the stock’s recent tendency to retreat rather than recover. Trading activity came in lighter than usual, with roughly 7.2 million shares changing hands compared with a 90-day average near 13.5 million. The combination of a sharp percentage drop and below-average volume points to a stock under pressure but without strong buying conviction stepping in on the downside.
Recent price action also highlights how far the stock has slid from earlier levels. MP now trades well below its 52-week high of $100.25 set on Oct. 14, 2025, leaving the shares more than 40% off that peak and firmly in a phase of retrenchment. In that context, the latest decline extends a broader pattern of weakness rather than signaling a fresh breakout. Within its sector, MP’s recent session appears more severe than many peers such as International Paper Company (IP), First Quantum Minerals (FM.TO), Dow Inc. (DOW), DuPont de Nemours (DD), and International Flavors & Fragrances (IFF), suggesting MP is facing comparatively steeper headwinds. For investors tracking short-term momentum, the stock’s slide and its sizable gap from the 52-week high reinforce an overall picture of a name that is still retreating and struggling to regain lost territory.
Why MP Materials Corp. Price is Moving Lower
Recent trading in MP Materials Corp. has turned choppy, with the stock sliding off its recent highs despite elevated volume and a lack of fresh, company-specific catalysts. After an exceptional year-to-date run driven by Department of Defense agreements and rare earths optimism, investors are reassessing how much good news is already priced in. The stock’s pullback reflects mounting concerns that a 275%-plus surge in 2025 has stretched valuations against still-weak fundamentals, including a negative P/E ratio and lingering losses. With the share price now well above levels seen earlier in the year, some holders appear to be locking in profits, putting near-term pressure on the stock.
Fundamentally, the recent move lower is also being tied to softening financial trends that contrast with the upbeat production narrative. Latest quarterly revenue of $53.55 million declined 6.7% from the prior quarter and nearly 15% year over year, while the company continues to post negative EPS of -$0.71 and a steep profit margin of -50.54%. That disconnect — record NdPr oxide output and expectations for future profitability versus shrinking sales and deep losses now — is fueling caution. In the broader materials space, peers such as International Paper, First Quantum Minerals, Dow, DuPont de Nemours, and International Flavors & Fragrances have also struggled, reinforcing a sector-wide risk-off tone. Together, these factors are pressuring MP’s share price as traders question the durability of recent gains and the timing of any meaningful earnings inflection.
What is the MP Materials Corp. Rating - Should I Sell?
Weiss Ratings assigns MP a D rating. Current recommendation is Sell. The stock was downgraded on 8/11/2025, signaling a deteriorating risk/reward profile that investors should treat with caution. A D rating means MP has underperformed on a risk-adjusted basis compared with many equities and carries meaningful downside risk that has not been adequately offset by its potential rewards.
Several sub-indices help explain this negative stance. The Very Weak Growth Index is a major concern, backed up by a revenue decline of 14.90% and a deeply negative profit margin of -50.54%. These figures indicate that the company is shrinking rather than expanding and is losing money on its operations. The Very Weak Efficiency Index further shows that management has struggled to convert assets and capital into profitable returns. A forward P/E of -84.92 reinforces that earnings power is currently impaired, making it difficult to justify the valuation on fundamentals.
There are a few offsets, but they are not enough to change the overall picture. The Excellent Solvency Index means the balance sheet appears strong, which may reduce bankruptcy risk. The Good Total Return Index indicates that, at times, shareholders have seen competitive performance. However, these positives have not shielded investors from heightened risk, especially in light of the Weak Volatility Index, which points to unstable price behavior.
Within the Materials sector, MP’s D rating is in line with other challenged names such as International Paper Company (IP, D+), Dow Inc. (DOW, D+), and DuPont de Nemours, Inc. (DD, D+). In this context, MP does not stand out as a relatively safer option and remains firmly in Sell territory under the Weiss Ratings system.
About MP Materials Corp.
MP Materials Corp. operates in the materials sector with a narrow focus on rare earth elements, a critical but highly specialized segment of the broader materials industry. The company’s primary asset is the Mountain Pass rare earth mine and processing facility in California, one of the few active rare earth operations in North America. MP Materials is engaged in the extraction, processing, and refining of rare earth concentrates, with an emphasis on producing neodymium-praseodymium (NdPr) oxide and related materials used in permanent magnets for electric vehicles, wind turbines, and various high-performance industrial and defense applications. This concentration on a single resource category exposes the company to cyclical demand, commodity price swings, and supply chain disruptions tied to end markets it does not control.
The company is attempting to build a vertically integrated rare earth supply chain, from mining and concentration through to separated oxides and, ultimately, magnet production. However, its business remains heavily reliant on the performance and long-term viability of the Mountain Pass operation and on successfully scaling complex processing capabilities that few competitors have mastered. MP Materials competes globally with established state-backed producers, especially in Asia, that often operate with structural cost and scale advantages. As a result, MP’s operating environment is characterized by intense competition, geopolitical sensitivity, and elevated execution risk, with limited diversification across assets, products, or geographies to cushion potential setbacks in its core rare earth materials business.
Investor Outlook
With MP Materials Corp. carrying a D (Sell) Weiss Rating, investors may want to focus on how sector sentiment, cost pressures, and profitability trends evolve before expecting a sustained recovery in the shares. Watch for any shift in the overall rating, as well as changes in risk factors like volatility and balance sheet strength that could alter the stock’s risk/reward profile. See full rankings of all D-rated Materials stocks inside the Weiss Stock Screener.
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