USA Rare Earth (NASDAQ:USAR) Shares Down 6.7% - Here's What Happened

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) experienced a 6.7% decline in share price during mid-day trading, falling to $13.85 after closing at $14.84.
• The company's recent earnings report showed a loss of ($0.08) per share, which was better than the expected loss of ($0.13) per share.
• Several research analysts have given mixed ratings on the stock, with Wall Street Zen downgrading it to "sell," while others maintained "buy" ratings, leading to a consensus rating of "buy" and an average target price of $16.00.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) traded down 6.7% during mid-day trading on Wednesday . The stock traded as low as $13.73 and last traded at $13.85. 1,722,367 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 2,347,657 shares. The stock had previously closed at $14.84.

Analyst Ratings Changes

USAR has been the topic of a number of recent analyst reports. Canaccord Genuity Group initiated coverage on USA Rare Earth in a research note on Friday, June 13th. They issued a "buy" rating and a $17.00 price objective on the stock. Roth Capital reissued a "buy" rating on shares of USA Rare Earth in a research note on Friday, June 13th. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Cantor Fitzgerald initiated coverage on USA Rare Earth in a research note on Friday, August 1st. They issued an "overweight" rating and a $16.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $16.00.

USA Rare Earth Price Performance

The firm has a 50 day moving average of $13.19.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings data on Monday, August 11th. The company reported ($0.08) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.05.

Insiders Place Their Bets

In related news, Director Michael Blitzer sold 2,091,849 shares of the business's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $15.75, for a total transaction of $32,946,621.75. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC grew its holdings in shares of 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 acquiring an additional 1,424 shares in the last quarter. SBI Securities Co. Ltd. grew its holdings in shares of USA Rare Earth by 10,448.0% in the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock valued at $29,000 after acquiring an additional 2,612 shares in the last quarter. LMR Partners LLP bought a new position in shares of USA Rare Earth in the second quarter valued at approximately $145,000. Titleist Asset Management LLC bought a new position in shares of USA Rare Earth in the first quarter valued at approximately $145,000. Finally, Diametric Capital LP bought a new position in shares of USA Rare Earth in the second quarter valued at approximately $147,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.