USA Rare Earth (NASDAQ:USAR) Shares Gap Down After Insider Selling

Key Points

• USA Rare Earth shares experienced a significant gap down in price from $17.19 to $16.77 following the sale of over 2 million shares by Director Michael Blitzer, totaling approximately $32.9 million.
• Recent analyst ratings show a mix of optimism and skepticism, with Canaccord Genuity issuing a "buy" rating and a $17 price target, while Wall Street Zen downgraded their rating from "hold" to "sell".
• The company reported earnings of ($0.08) per share, beating analyst expectations, and has been seeing increased institutional interest, with several hedge funds boosting their stakes in the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $17.19, but opened at $16.77. USA Rare Earth shares last traded at $15.97, with a volume of 1,228,017 shares trading hands.

Specifically, Director Michael Blitzer sold 2,091,849 shares of USA Rare Earth 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Analysts Set New Price Targets

Several research firms recently issued reports on USAR. Cantor Fitzgerald initiated coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They issued an "overweight" rating and a $16.00 target price for the company. Wall Street Zen cut shares of USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Finally, Canaccord Genuity Group initiated coverage on shares of USA Rare Earth in a research report on Friday, June 13th. They set a "buy" rating and a $17.00 target price on the stock. Three research analysts have rated the stock with a Buy rating, According to MarketBeat.com, USA Rare Earth currently has an average rating of "Buy" and a consensus target price of $16.00.

USA Rare Earth Price Performance

The firm has a fifty day moving average of $13.14.

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

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC raised 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 worth $25,000 after buying an additional 1,424 shares in the last quarter. SBI Securities Co. Ltd. increased its position in shares of USA Rare Earth by 10,448.0% during the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock worth $29,000 after acquiring an additional 2,612 shares during the period. Titleist Asset Management LLC purchased a new stake in shares of USA Rare Earth during the first quarter valued at about $145,000. LMR Partners LLP acquired a new position in shares of USA Rare Earth in the 2nd quarter valued at $145,000. Finally, Diametric Capital LP acquired a new position in USA Rare Earth during the second quarter valued at $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.