MP Materials, Defense Dept
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China, MP Materials and Rare Earth
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As of 10:17 a.m. ET on Friday, shares of MP Materials stock had climbed 6.5%.
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Zacks.com on MSNMP Materials (MP) Moves 50.6% Higher: Will This Strength Last?MP Materials (MP) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
MP stock soars as the U.S. Defense Department becomes the company’s largest shareholder. Investors are still recommended to tread with caution.
MP Materials (NYSE: MP) is up 50% today after an announcement that the Department of Defense is buying $400 million of preferred stock in the company. This will make the Pentagon the largest shareholder here.
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The Department of Justice announced a $400 billion investment in MP to fund a huge rare earths processing plant expansion. In conjunction, the DoD agreed to a long-term purchase agreement with a minimum price and volume commitments.