Alyeska Investment Group L.P. Sells 5,280,456 Shares of USA Rare Earth Inc. $USAR

Key Points

• Alyeska Investment Group cut its USA Rare Earth stake by 31.9%, selling 5.28 million shares in the second quarter while retaining 11.29 million shares, or about 5.06% of the company.
• USA Rare Earth shares were trading at $17.99, down 6.5%, with the company reporting a quarterly loss of $0.15 per share versus the $0.07 consensus estimate. Analysts nevertheless maintained a “Moderate Buy” consensus and an average price target of $35.83.
• Institutional activity was mixed: Bank of America significantly increased its position, while several other funds initiated stakes. Director Carolyn Trabuco also sold 13,000 shares, reducing her holdings by 40.9%.

Alyeska Investment Group L.P. trimmed its holdings in shares of USA Rare Earth Inc. (NASDAQ:USAR - Free Report) by 31.9% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 11,290,321 shares of the company's stock after selling 5,280,456 shares during the period. USA Rare Earth makes up approximately 0.6% of Alyeska Investment Group L.P.'s holdings, making the stock its 25th largest position. Alyeska Investment Group L.P. owned approximately 5.06% of USA Rare Earth worth $243,645,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in the stock. NewEdge Advisors LLC increased its position in USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after buying an additional 1,424 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of USA Rare Earth during the second quarter valued at $223,000. Lighthouse Investment Partners LLC purchased a new position in shares of USA Rare Earth in the 2nd quarter worth about $329,000. Bank of America Corp DE raised its position in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after purchasing an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP bought a new position in USA Rare Earth in the 2nd quarter worth about $145,000.

USA Rare Earth Trading Down 6.5%

Shares of NASDAQ USAR opened at $17.99 on Friday. USA Rare Earth Inc. has a 12-month low of $11.45 and a 12-month high of $43.98. The firm has a market capitalization of $4.01 billion, a price-to-earnings ratio of -7.40 and a beta of 2.55. The firm has a 50 day moving average of $18.07 and a 200 day moving average of $20.09.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Sell-side analysts predict that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms have weighed in on USAR. Needham & Company LLC reduced their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. Roth Capital dropped their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Cantor Fitzgerald reiterated an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Weiss Ratings cut shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Finally, Wedbush raised their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $35.83.

Insider Activity at USA Rare Earth

In related news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the transaction, the director directly owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 9.10% of the stock is owned by company insiders.

About USA Rare Earth

USA Rare Earth NASDAQ: USAR is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.

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