USA Rare Earth (NASDAQ:USAR) Sees Large Volume Increase - Still a Buy?

Key Points

• USA Rare Earth experienced a significant trading volume increase of 407%, with 15.5 million shares traded, pushing the stock price up to $27.46 from a previous close of $22.71.
• Analysts have mixed ratings on the stock: Roth Capital maintained a "buy" rating, while Wall Street Zen downgraded it to "sell," leading to a current average rating of "Moderate Buy."
• Recent insider activity saw Director Michael Blitzer sell over 2 million shares, while institutional investors significantly increased their positions in the company during the second quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) saw strong trading volume on Friday . 15,541,665 shares traded hands during mid-day trading, an increase of 407% from the previous session's volume of 3,066,935 shares.The stock last traded at $27.46 and had previously closed at $22.71.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a report on Monday. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Cantor Fitzgerald assumed coverage on USA Rare Earth in a report on Friday, August 1st. They set an "overweight" rating and a $16.00 price target for the company. Canaccord Genuity Group lifted their price target on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a report on Tuesday. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a report on Saturday, September 27th. Three equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $17.67.

USA Rare Earth Price Performance

The company has a 50-day moving average price of $15.31.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its earnings results 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 related news, Director Michael Blitzer sold 2,091,849 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 46.60% of the stock is currently owned by company insiders.

Institutional Trading of USA Rare Earth

A number of large investors have recently made changes to their positions in USAR. NewEdge Advisors LLC boosted its position in shares of USA Rare Earth by 158.2% in the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after purchasing an additional 1,424 shares during the period. SBI Securities Co. Ltd. raised its stake in USA Rare Earth by 10,448.0% during the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock valued at $29,000 after acquiring an additional 2,612 shares during the last quarter. Osaic Holdings Inc. purchased a new stake in USA Rare Earth during the 2nd quarter valued at approximately $38,000. LMR Partners LLP purchased a new stake in USA Rare Earth during the 2nd quarter valued at approximately $145,000. Finally, Titleist Asset Management LLC purchased a new stake in USA Rare Earth during the 1st quarter valued at approximately $145,000.

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.

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