MP Materials (MP) Ends 4-Day Run, Loses 8.9% on Profit-Taking

We recently published 10 Stocks Crash Harder than Wall Street. MP Materials Corp. (NYSE:MP) is one of the worst performers on Wednesday.

MP Materials snapped a four-day winning streak on Wednesday, losing 8.92 percent to close at $89.85 apiece as investors resorted to profit-taking following the previous day’s surge.

In just the past four trading days, shares of MP Materials Corp. (NYSE:MP) have jumped by as much as 42 percent. Month-to-date, it was up by 34 percent.

The previous days’ rally was due to a recent trade spat between the US and China amid the latter’s new export curbs on rare earth imports that sparked fears of global supplies. However, the tensions benefited US rare earth producers, including MP Materials Corp. (NYSE:MP), on investor expectations that consumers would look elsewhere to secure supply.

MP Materials Corp. (NYSE:MP) recently clinched a partnership with the US government through the Department of Defense, with the latter acquiring a 15 percent stake in the company for $400 million.

Copyright: epstock / 123RF Stock Photo

The transaction covered the purchase of preferred shares, in addition to warrants convertible to $30.03 per share for 10 years, that would allow the government to purchase additional common stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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