What's Going On With MP Materials Stock Today?

MP Materials Corp MP shares are moving Monday after the company announced a proposed offering and increased its share repurchase authorization.

What Happened: MP Materials announced that it plans to offer $500 million worth of its convertible senior notes due 2030 through a private offering to institutional buyers. The company expects to grant the initial purchasers an option to purchase up to an additional $75 million worth of notes within a 13-day period.

MP Materials said it intends to use the net proceeds from the offering to fund the cost of entering into capped call transactions, to repurchase up to $300 million of its common stock and to repurchase a portion of its 0.25% green convertible senior notes due 2026, as well as for general corporate purposes.

MP Materials also announced that its board authorized a share repurchase program of up to $300 million. The buyback authorization is effective for one year and does not require the purchase of any minimum number of shares.

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How To Buy MP Stock

By now you're likely curious about how to participate in the market for MP Materials – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the case of MP Materials, which is trading at $15.75 as of publishing time, $100 would buy you 6.35 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

MP Price Action: MP Materials shares were up 1.36% at $15.68 at the time of writing, according to Benzinga Pro.

Photo: horjaraul from Pixabay.