USA Rare Earth (NASDAQ:USAR) Shares Down 4.3% - Should You Sell?

Key Points

• Shares fell 4.3% to $18.20 mid-day with trading volume about 51% below the average, after closing prior at $19.02.
• Wall Street is mostly bullish—six analysts rate the stock a Buy versus one Sell, with a consensus rating of Moderate Buy and a consensus price target of $34.33.
• Company insiders showed conviction: Director Michael Blitzer bought 100,000 shares (raising his stake to 847,500) and insiders collectively own about 46.6% of the company.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were down 4.3% during mid-day trading on Wednesday . The stock traded as low as $18.19 and last traded at $18.20. Approximately 12,256,149 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 25,018,953 shares. The stock had previously closed at $19.02.

Wall Street Analyst Weigh In

Several analysts recently commented on USAR shares. Canaccord Genuity Group raised their target price on USA Rare Earth from $23.00 to $33.00 and gave the stock a "buy" rating in a report on Tuesday, January 27th. Cantor Fitzgerald upped 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. UBS Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Monday, December 8th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. Finally, Roth Mkm boosted their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a research note on Monday, January 26th. Six research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $34.33.

USA Rare Earth Stock Down 4.3%

The firm has a market cap of $2.41 billion, a price-to-earnings ratio of -35.00 and a beta of 0.93. The company's 50-day moving average price is $18.26 and its 200-day moving average price is $18.16.

Insider Activity at USA Rare Earth

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

Institutional Investors Weigh In On USA Rare Earth

Large investors have recently modified their holdings of the business. Larson Financial Group LLC raised its position in shares of USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after buying an additional 1,433 shares during the last quarter. NewEdge Advisors LLC grew its stake in USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after acquiring an additional 1,424 shares in the last quarter. Center for Financial Planning Inc. acquired a new stake in USA Rare Earth in the 4th quarter valued at about $28,000. SBI Securities Co. Ltd. lifted its stake in USA Rare Earth by 10,448.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock worth $29,000 after purchasing an additional 2,612 shares in the last quarter. Finally, Havemeyer Place LP purchased a new position in USA Rare Earth in the 4th quarter worth approximately $33,000.

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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