Rainbow Rare Earths (LON:RBW) Stock Falls 3.5% - Here's Why

Key Points

• Rainbow Rare Earths shares fell 3.5% to GBX 20.50 in midday trading, with volume down 70% from the average session.
• Analysts remain positive, with Canaccord Genuity and Berenberg reaffirming Buy-oriented ratings. The stock has a consensus “Buy” rating and an average price target of GBX 40.33.
• Insider activity was mixed: George Bennett sold 550,000 shares for £115,500, while Alexander Lowrie bought 95,555 shares for £23,888.75. Insiders collectively own 23.30% of the company.

Rainbow Rare Earths Limited (LON:RBW - Get Free Report) fell 3.5% during mid-day trading on Thursday. The stock traded as low as GBX 20.50 and last traded at GBX 20.50. Approximately 286,407 shares traded hands during trading, a decline of 70% from the average session volume of 945,593 shares. The stock had previously closed at GBX 21.25.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on RBW. Canaccord Genuity Group reissued a "speculative buy" rating and issued a GBX 39 price objective on shares of Rainbow Rare Earths in a research report on Thursday, September 24th. Berenberg Bank restated a "buy" rating and set a GBX 52 price objective on shares of Rainbow Rare Earths in a research note on Thursday, September 24th. Three research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, Rainbow Rare Earths currently has a consensus rating of "Buy" and an average price target of GBX 40.33.

Rainbow Rare Earths Stock Down 3.5%

The company has a market cap of £143.99 million, a P/E ratio of -18.81 and a beta of 0.46. The company has a debt-to-equity ratio of 9.83, a current ratio of 1.22 and a quick ratio of 3.79. The stock has a fifty day moving average price of GBX 23.35 and a two-hundred day moving average price of GBX 23.65.

Insider Activity at Rainbow Rare Earths

In related news, insider George Bennett sold 550,000 shares of Rainbow Rare Earths stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of GBX 21, for a total value of £115,500. Also, insider Alexander Lowrie bought 95,555 shares of the stock in a transaction on Thursday, August 13th. The shares were acquired at an average cost of GBX 25 per share, for a total transaction of £23,888.75. 23.30% of the stock is currently owned by company insiders.

Rainbow Rare Earths Company Profile

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition and other advanced future-facing technologies. It is doing this successfully via pioneering the first commercial recovery of rare earth elements from phosphogypsum that occurs as the by-product of phosphoric acid production. These projects eliminate the cost and risk of mining, meaning that they can be brought into production quicker and at a lower cost than traditional hard rock mining projects. The Company is developing the Phalaborwa Project in South Africa and the earlier stage Uberaba Project in Brazil.

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