USA Rare Earth (NASDAQ:USAR) Shares Down 4.2% - Here's What Happened

Key Points

• Shares fell 4.2% to $14.64 (intraday low $14.22) on Tuesday, with 12.22 million shares traded—about 35% below the average session volume.
• Wall Street sentiment is generally positive with a consensus "Moderate Buy" and an average target price of $33, based on six Buy ratings and one Sell; recent analyst targets have ranged roughly $25–$35.
• Fundamentals showed a quarter miss—EPS of ($0.19) vs. ($0.12) expected and $1.64M in revenue—yet insiders have been buying (notably Michael Blitzer's 100,000‑share purchase) and insiders own about 46.6% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares fell 4.2% during trading on Tuesday . The stock traded as low as $14.22 and last traded at $14.64. 12,220,324 shares traded hands during trading, a decline of 35% from the average session volume of 18,839,980 shares. The stock had previously closed at $15.28.

Wall Street Analysts Forecast Growth

Several brokerages have commented on USAR. Benchmark began coverage on shares of USA Rare Earth in a research report on Wednesday, January 21st. They set a "buy" rating for the company. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a research report on Friday, March 27th. Canaccord Genuity Group lowered their price objective on shares of USA Rare Earth from $33.00 to $29.00 and set a "buy" rating for the company in a research report on Tuesday, March 31st. Roth Mkm boosted their price objective on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Finally, UBS Group reiterated a "buy" rating on shares of USA Rare Earth in a report on Monday, December 8th. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $33.00.

USA Rare Earth Price Performance

The firm's fifty day moving average price is $19.33 and its 200-day moving average price is $18.86. The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of -4.88 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings results on Monday, March 30th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter.

Insider Buying and Selling at USA Rare Earth

In related news, Director Carolyn Trabuco purchased 1,300 shares of the stock in a transaction dated Thursday, January 29th. The stock was bought at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the acquisition, the director owned 1,300 shares of the company's stock, valued at approximately $29,380. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael Blitzer purchased 100,000 shares of the stock in a transaction dated Thursday, January 29th. The shares were bought at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the acquisition, the director directly owned 847,500 shares of the company's stock, valued at approximately $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 corporate insiders.

Institutional Trading of USA Rare Earth

Institutional investors have recently modified their holdings of the business. Calamos Advisors LLC bought a new stake in shares of USA Rare Earth in the third quarter worth $3,283,000. Farther Finance Advisors LLC grew its stake in shares of USA Rare Earth by 1,461,225.0% in the third quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock worth $1,005,000 after purchasing an additional 58,449 shares during the last quarter. Guild Investment Management Inc. bought a new stake in shares of USA Rare Earth in the third quarter worth $1,080,000. Altfest L J & Co. Inc. bought a new stake in shares of USA Rare Earth in the third quarter worth $13,554,000. Finally, Sovran Advisors LLC grew its stake in shares of USA Rare Earth by 119.7% in the fourth quarter. Sovran Advisors LLC now owns 489,707 shares of the company's stock worth $5,828,000 after purchasing an additional 266,783 shares during the last quarter.

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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