MP Materials (MP) Drops on Stock Rating Downgrade

MP Materials Corp. (NYSE:MP) is one of the 10 Stocks That Investors Are Dumping.

MP Materials dropped its share prices by 3.72 percent on Wednesday to end at $30.03 apiece as investors sold off positions following the recent stock rating downgrade from an investment firm.

In a market note, Jefferies downgraded its rating for MP Materials Corp.’s (NYSE:MP) stock to “hold” from “buy” previously, but raised its price target to $33 from $32 previously. The new figure marked a 9.9-percent upside from its latest closing price.

According to Jefferies, the downward revision was based on China’s decision to ease up on rare earth export restrictions for a short-term period after mounting calls from affected industries globally to loosen up.

Heavy machinery at work in a mining facility, excavating the earth for rare earth minerals.

Jefferies said the temporary easing would reduce the risk of near-term rare earth shortages in the market.

Investors of MP Materials Corp. (NYSE:MP) viewed China’s move in a negative light for as the exports easing could weaken its pricing power with higher supply and increased competition with Chinese counterparts.

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Disclosure: None. This article is originally published at Insider Monkey.