USA Rare Earth (NASDAQ:USAR) Shares Down 6.5% - Time to Sell?

Key Points

• USA Rare Earth shares fell 6.5% on Friday, trading as low as $14.14, with volume well below average. The stock closed at $15.14 the prior day.
• Analysts remain generally positive despite recent caution: the stock has a consensus “Moderate Buy” rating and a price target of $35.83. Recent reports included a mix of upgrades and lower price targets, but nine analysts still rate it a Buy.
• The company beat quarterly EPS estimates, reporting losses of $0.12 per share versus the expected $0.16 loss, on revenue of $5.7 million. Separately, a director sold 13,000 shares in June, while institutional investors such as Vanguard and State Street increased their holdings.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price was down 6.5% on Friday . The company traded as low as $14.14 and last traded at $14.15. Approximately 8,947,936 shares were traded during trading, a decline of 48% from the average daily volume of 17,178,705 shares. The stock had previously closed at $15.14.

Analyst Ratings Changes

A number of research analysts have recently issued reports on USAR shares. Wall Street Zen upgraded shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Roth Capital decreased their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research report on Tuesday. Weiss Ratings raised shares of USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Finally, Wedbush lifted their price objective on USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 12th. Nine 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 stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $35.83.

USA Rare Earth Stock Down 6.5%

The firm's 50 day simple moving average is $21.73 and its two-hundred day simple moving average is $20.64. The stock has a market capitalization of $3.16 billion, a P/E ratio of -3.61 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. The company had revenue of $5.70 million for the quarter. As a group, equities research analysts expect that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Transactions at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the transaction, the director owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 9.10% of the company's stock.

Institutional Trading of USA Rare Earth

Several hedge funds have recently added to or reduced their stakes in USAR. Alyeska Investment Group L.P. grew its position in shares of USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock valued at $219,034,000 after acquiring an additional 3,909,455 shares during the period. Bayshore Capital Advisors LLC bought a new position in USA Rare Earth during the fourth quarter valued at $102,378,000. Vanguard Group Inc. increased its position in USA Rare Earth by 533.3% in the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock worth $71,834,000 after buying an additional 5,083,288 shares during the last quarter. State Street Corp increased its position in USA Rare Earth by 78.4% in the fourth quarter. State Street Corp now owns 5,032,866 shares of the company's stock worth $59,891,000 after buying an additional 2,212,177 shares during the last quarter. Finally, Inflection Point Holdings II LLC bought a new stake in shares of USA Rare Earth in the fourth quarter valued at $37,188,000.

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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