Sovran Advisors LLC Cuts Stock Holdings in USA Rare Earth Inc. $USAR

Key Points

• Sovran Advisors LLC cut its USA Rare Earth stake by 6.7% in the first quarter, selling 32,787 shares and ending with 456,920 shares valued at about $6.9 million.
• Analyst sentiment remains constructive, with nine Buy ratings and one Sell rating; the stock carries a Moderate Buy consensus and an average price target of $36.83.
• USA Rare Earth recently reported a smaller-than-expected quarterly loss of ($0.12) EPS on $5.7 million in revenue, while insider director Carolyn Trabuco also sold 13,000 shares in June.

Sovran Advisors LLC lowered its holdings in USA Rare Earth Inc. (NASDAQ:USAR - Free Report) by 6.7% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 456,920 shares of the company's stock after selling 32,787 shares during the quarter. Sovran Advisors LLC owned approximately 0.21% of USA Rare Earth worth $6,915,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of USAR. Sequoia Financial Advisors LLC boosted its stake in shares of USA Rare Earth by 20.8% during the first quarter. Sequoia Financial Advisors LLC now owns 21,715 shares of the company's stock valued at $329,000 after purchasing an additional 3,736 shares in the last quarter. Hsbc Holdings PLC bought a new position in USA Rare Earth in the first quarter worth approximately $734,000. Bogart Wealth LLC bought a new position in USA Rare Earth in the first quarter worth approximately $83,000. Ascentis Independent Advisors purchased a new stake in USA Rare Earth during the first quarter worth $27,000. Finally, Revisor Wealth Management LLC purchased a new stake in USA Rare Earth during the first quarter worth $176,000.

Analysts Set New Price Targets

Several brokerages have issued reports on USAR. Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Northland Securities began coverage on USA Rare Earth in a research report on Thursday, April 23rd. They issued an "outperform" rating and a $45.00 price target for the company. Needham & Company LLC started coverage on USA Rare Earth in a research note on Monday, June 1st. They set a "buy" rating and a $39.00 price objective for the company. Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Finally, Wedbush lifted their target price on USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a research note on Tuesday, May 12th. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, USA Rare Earth currently has a consensus rating of "Moderate Buy" and an average target price of $36.83.

USA Rare Earth Stock Performance

USAR traded down $0.39 during trading on Friday, hitting $18.48. The stock had a trading volume of 5,912,407 shares, compared to its average volume of 11,899,707. The company has a market capitalization of $4.12 billion, a PE ratio of -4.71 and a beta of 2.45. USA Rare Earth Inc. has a twelve month low of $10.50 and a twelve month high of $43.98. The stock has a 50 day simple moving average of $23.55 and a two-hundred day simple moving average of $20.41.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. On average, equities research analysts anticipate that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insider Transactions at USA Rare Earth

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the sale, the director directly owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 9.10% of the stock is owned by corporate 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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