USA Rare Earth (NASDAQ:USAR) Sees Large Volume Increase - What's Next?

Key Points

• USA Rare Earth (NASDAQ:USAR) experienced a 9% increase in trading volume, with 2,522,721 shares traded on a recent Tuesday, although the stock price dropped from $15.70 to $14.51.
• The company's quarterly earnings report showed a loss of ($0.08) per share, surpassing analysts' expectations of ($0.13) by $0.05.
• After significant insider selling and various analyst ratings, the stock maintains an average rating of "Buy" with a target price of $16.00, as rated by three equities research analysts.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 2,522,721 shares changed hands during trading, an increase of 9% from the previous session's volume of 2,323,400 shares.The stock last traded at $14.51 and had previously closed at $15.70.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on USAR shares. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Canaccord Genuity Group began coverage on USA Rare Earth in a research report on Friday, June 13th. They set a "buy" rating and a $17.00 target price on the stock. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Finally, Cantor Fitzgerald began coverage on USA Rare Earth in a research report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, USA Rare Earth currently has an average rating of "Buy" and an average target price of $16.00.

USA Rare Earth Price Performance

The business's 50 day simple moving average is $13.19.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings data on Monday, August 11th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.13) by $0.05.

Insider Activity

In other news, Director Michael Blitzer sold 2,091,849 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total transaction of $32,946,621.75. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of USAR. Newtyn Management LLC bought a new position in shares of USA Rare Earth during the first quarter valued at about $4,114,000. Geode Capital Management LLC boosted its holdings in shares of USA Rare Earth by 2,437.5% during the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock worth $7,160,000 after purchasing an additional 627,545 shares during the period. Bank of America Corp DE boosted its holdings in shares of USA Rare Earth by 465.7% during the second 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 period. Pier 88 Investment Partners LLC purchased a new stake in shares of USA Rare Earth during the second quarter worth about $588,000. Finally, Advisory Services Network LLC purchased a new stake in shares of USA Rare Earth during the second quarter worth about $562,000.

About USA Rare Earth

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.