USA Rare Earth (NASDAQ:USAR) Shares Down 12.4% - Here's What Happened

Key Points

• Shares of USA Rare Earth plunged 12.4% in mid-day trading to as low as $18.69 (last $19.08) on above-average volume of 31.2 million shares, after closing the prior session at $21.77.
• Analysts remain broadly positive with six Buy ratings versus one Sell and a consensus target price of $34.33, including recent price-objective upgrades from some firms.
• Insiders increased stakes amid the selloff: Director Michael Blitzer bought 100,000 shares at $21.44 and Carolyn Trabuco bought 1,300 shares, leaving insiders owning approximately 46.6% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price fell 12.4% during mid-day trading on Thursday . The company traded as low as $18.69 and last traded at $19.08. 31,214,800 shares traded hands during mid-day trading, an increase of 19% from the average session volume of 26,224,227 shares. The stock had previously closed at $21.77.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on USAR shares. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a report on Monday, December 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Monday, December 29th. William Blair initiated coverage on shares of USA Rare Earth in a research report on Monday, October 20th. They set an "outperform" rating for the company. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They issued a "buy" rating on the stock. Finally, Canaccord Genuity Group upped their price objective on USA Rare Earth from $23.00 to $33.00 and gave the company a "buy" rating in a research note on Tuesday, January 27th. Six analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $34.33.

USA Rare Earth Trading Down 12.4%

The stock has a fifty day simple moving average of $18.11 and a two-hundred day simple moving average of $17.93. The firm has a market cap of $2.53 billion, a PE ratio of -36.69 and a beta of 0.93.

Insider Activity at USA Rare Earth

In other news, Director Carolyn Trabuco purchased 1,300 shares of USA Rare Earth stock in a transaction dated Thursday, January 29th. The stock was purchased at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the transaction, the director directly owned 1,300 shares of the company's stock, valued at approximately $29,380. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Michael Blitzer acquired 100,000 shares of the stock in a transaction that occurred on Thursday, January 29th. The stock was acquired at an average price of $21.44 per share, for a total transaction of $2,144,000.00. Following the transaction, the director directly owned 847,500 shares of the company's stock, valued at $18,170,400. This represents a 13.38% increase in their position. The disclosure for this purchase is available in the SEC filing. 46.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Calamos Advisors LLC bought a new position in USA Rare Earth in the third quarter valued at $3,283,000. Pier 88 Investment Partners LLC purchased a new position in shares of USA Rare Earth in the 2nd quarter worth about $588,000. Farther Finance Advisors LLC increased its position in shares of USA Rare Earth by 1,461,225.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after purchasing an additional 58,449 shares during the last quarter. Altfest L J & Co. Inc. purchased a new position in shares of USA Rare Earth during the 3rd quarter valued at about $13,554,000. Finally, Guild Investment Management Inc. bought a new stake in USA Rare Earth in the 3rd quarter worth approximately $1,080,000.

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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