USA Rare Earth (NASDAQ:USAR) Shares Down 2% - Time to Sell?

Key Points

• USA Rare Earth shares fell about 2% to $19.02 (intraday low $18.42) on Tuesday, with volume of 15.11 million shares—down roughly 41% from the average session volume of 25.43 million.
• Analyst sentiment is mixed-to-positive: six analysts rate the stock a Buy and one a Sell, producing a consensus "Moderate Buy" and a consensus target of $34.33, while several firms recently raised targets toward $35 and Weiss Ratings maintains a "sell (D-)" view.
• Insiders increased positions in late January—Director Michael Blitzer bought 100,000 shares at $21.44 and Director Carolyn Trabuco bought 1,300 shares at $22.60—and insiders now own 46.60% of the company; USA Rare Earth is a development-stage REE and lithium play advancing the Round Top deposit in Texas and on-site separation plans.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) traded down 2% during trading on Tuesday . The company traded as low as $18.42 and last traded at $19.02. 15,114,564 shares traded hands during trading, a decline of 41% from the average session volume of 25,430,434 shares. The stock had previously closed at $19.40.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Benchmark assumed coverage on USA Rare Earth in a research report on Wednesday, January 21st. They issued a "buy" rating for the company. Cantor Fitzgerald upped their price objective on USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a report on Friday, January 30th. William Blair started coverage on USA Rare Earth in a research note on Monday, October 20th. They set an "outperform" rating for the company. Roth Mkm lifted their target price on USA Rare Earth from $25.00 to $35.00 and gave the stock a "buy" rating in a report on Monday, January 26th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research report on Monday, December 29th. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $34.33.

USA Rare Earth Stock Performance

The company's 50 day simple moving average is $18.23 and its two-hundred day simple moving average is $18.13. The stock has a market cap of $2.52 billion, a price-to-earnings ratio of -36.58 and a beta of 0.91.

Insider Transactions at USA Rare Earth

In related news, Director Michael Blitzer acquired 100,000 shares of the stock in a transaction dated Thursday, January 29th. The shares were acquired at an average price of $21.44 per share, for a total transaction of $2,144,000.00. Following the completion of the purchase, the director owned 847,500 shares in the company, valued at approximately $18,170,400. The trade was a 13.38% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Carolyn Trabuco acquired 1,300 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were bought at an average price of $22.60 per share, for a total transaction of $29,380.00. Following the acquisition, the director owned 1,300 shares in the company, valued at approximately $29,380. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

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