USA Rare Earth (NASDAQ:USAR) Sees Strong Trading Volume - Time to Buy?

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) experienced a significant increase in trading volume, with approximately 5.17 million shares traded, an 87% rise from the previous session.
• Analyst ratings are mixed, with three analysts giving a "Buy" rating and a consensus average price target of $16.00, while one analyst has downgraded the stock to a "Sell".
• Insider activity includes Director Michael Blitzer selling over 2 million shares for approximately $32.9 million, leading to concerns about potential impacts on investor sentiment.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) saw unusually-strong trading volume on Thursday . Approximately 5,170,804 shares were traded during mid-day trading, an increase of 87% from the previous session's volume of 2,761,975 shares.The stock last traded at $18.98 and had previously closed at $16.66.

Analyst Upgrades and Downgrades

Several analysts have weighed in on USAR shares. Canaccord Genuity Group started coverage on USA Rare Earth in a research report on Friday, June 13th. They issued a "buy" rating and a $17.00 price objective for the company. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. 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 note on Friday, August 1st. They set an "overweight" rating and a $16.00 target price on the stock. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $16.00.

USA Rare Earth Price Performance

The business has a 50 day simple moving average of $14.71.

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

Insider Activity at USA Rare Earth

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of USAR. Newtyn Management LLC bought a new position in USA Rare Earth in the first quarter valued at about $4,114,000. Geode Capital Management LLC increased its stake in USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock worth $7,160,000 after acquiring an additional 627,545 shares during the last quarter. Bank of America Corp DE increased its position in shares of USA Rare Earth by 465.7% during the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after purchasing an additional 199,819 shares during the last quarter. Pier 88 Investment Partners LLC purchased a new position in USA Rare Earth during the 2nd quarter valued at $588,000. Finally, Advisory Services Network LLC purchased a new position in USA Rare Earth during the 2nd quarter valued at $562,000.

USA Rare Earth Company Profile

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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