USA Rare Earth (NASDAQ:USAR) Shares Down 6.3% - What's Next?

Key Points

• Shares fell 6.3% on Friday to a last trade of $17.23 (intraday low $16.82), on ~13.38M shares traded—about 45% below the stock's average daily volume.
• Analyst sentiment is largely bullish: six Buy ratings versus one Sell, several recent target increases (e.g., Canaccord to $33, Cantor Fitzgerald to $35) and a consensus target of $34.33 ("Moderate Buy").
• Significant insider buying was disclosed—Director Michael Blitzer purchased 100,000 shares at $21.44 and Director Carolyn Trabuco bought 1,300 shares—leaving insiders with roughly 46.6% ownership.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were down 6.3% on Friday . The stock traded as low as $16.82 and last traded at $17.23. Approximately 13,377,910 shares traded hands during trading, a decline of 45% from the average daily volume of 24,522,232 shares. The stock had previously closed at $18.39.

Wall Street Analyst Weigh In

Several brokerages have issued reports on USAR. Canaccord Genuity Group increased their price target 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 increased their target price on USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They set a "buy" rating on the stock. UBS Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Monday, December 8th. Finally, Weiss Ratings reissued 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 given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $34.33.

USA Rare Earth Stock Performance

The firm has a market cap of $2.29 billion, a price-to-earnings ratio of -33.13 and a beta of 0.93. The stock has a 50-day moving average of $18.28 and a 200-day moving average of $18.17.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco bought 1,300 shares of USA Rare Earth stock in a transaction that occurred on Thursday, January 29th. The stock was acquired at an average price 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 $29,380. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Michael Blitzer purchased 100,000 shares of the stock in a transaction 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 directly owned 847,500 shares in the company, valued at approximately $18,170,400. The trade was a 13.38% increase in their position. The SEC filing for this purchase provides additional information. 46.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

Large investors have recently modified their holdings of the business. Larson Financial Group LLC increased 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 acquiring an additional 1,433 shares during the last quarter. NewEdge Advisors LLC grew its stake in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after purchasing an additional 1,424 shares in the last quarter. Center for Financial Planning Inc. bought a new position in USA Rare Earth in the fourth quarter valued at approximately $28,000. SBI Securities Co. Ltd. increased its position in shares of USA Rare Earth by 10,448.0% during 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 during the last quarter. Finally, Havemeyer Place LP bought a new stake in shares of USA Rare Earth during 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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