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 before the market opened 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.

Specifically, Director Michael Blitzer sold 2,091,849 shares of USA Rare Earth stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

USAR has been the topic of several recent research reports. Canaccord Genuity Group began 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 reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Cantor Fitzgerald initiated coverage on shares of USA Rare Earth in a research report on Friday, August 1st. They set an "overweight" rating and a $16.00 price target on the stock. Finally, Wall Street Zen lowered USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday.

USA Rare Earth Price Performance

The firm's fifty day moving average is $12.99.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of USAR. NewEdge Advisors LLC raised 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. SBI Securities Co. Ltd. raised its stake in shares of 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 buying an additional 2,612 shares in the last quarter. LMR Partners LLP acquired a new position in USA Rare Earth during the second quarter worth about $145,000. Titleist Asset Management LLC acquired a new position in USA Rare Earth during the first quarter worth about $145,000. Finally, Diametric Capital LP acquired a new position in USA Rare Earth during the second quarter worth about $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.

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