USA Rare Earth (NASDAQ:USAR) Shares Down 3.2% - What's Next?

Key Points

• Shares fell 3.2% on Thursday to about $17.81 (intraday low $17.28) with roughly 11.33 million shares traded, about 44% below the stock's average daily volume.
• Analysts are largely bullish—six Buy ratings and one Sell produce an average consensus of “Moderate Buy” and an average price target of $34.33, with several firms recently raising targets.
• Insiders and institutions are accumulating: Director Michael Blitzer bought 100,000 shares at $21.44 (insiders own 46.60%), and large investors like Alyeska, Vanguard and State Street significantly increased stakes as the company advances its Round Top rare‑earth and lithium project.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price dropped 3.2% on Thursday . The company traded as low as $17.28 and last traded at $17.81. Approximately 11,330,294 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 20,089,455 shares. The stock had previously closed at $18.40.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Monday, December 29th. Roth Mkm upped their price target on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a report on Monday, January 26th. Benchmark started coverage on USA Rare Earth in a research note on Wednesday, January 21st. They issued a "buy" rating on the stock. Cantor Fitzgerald boosted their price objective on USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research report on Friday, January 30th. Finally, UBS Group restated a "buy" rating on shares of USA Rare Earth in a research note on Monday, December 8th. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $34.33.

USA Rare Earth Stock Performance

The company's 50 day moving average is $20.21 and its 200 day moving average is $18.68. The stock has a market capitalization of $2.36 billion, a price-to-earnings ratio of -34.25 and a beta of 1.05.

Insider Activity

In related news, Director Michael Blitzer bought 100,000 shares of USA Rare Earth 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 completion of the purchase, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This represents a 13.38% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Carolyn Trabuco purchased 1,300 shares of the stock in a transaction that occurred on Thursday, January 29th. The shares were purchased at an average price of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the purchase, 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 disclosure for this purchase is available in the SEC filing. 46.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of USAR. Alyeska Investment Group L.P. boosted its stake in USA Rare Earth by 44.0% during the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after buying an additional 3,909,455 shares in the last quarter. Bayshore Capital Advisors LLC bought a new position in shares of USA Rare Earth during the 4th quarter worth about $102,378,000. Vanguard Group Inc. lifted its holdings in shares of USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock worth $71,834,000 after acquiring an additional 5,083,288 shares during the period. State Street Corp boosted its position in shares of USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company's stock valued at $59,891,000 after acquiring an additional 2,212,177 shares in the last quarter. Finally, Inflection Point Holdings II LLC bought a new stake in USA Rare Earth in the fourth quarter valued at about $37,188,000.

USA Rare Earth Company Profile

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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