USA Rare Earth (NASDAQ:USAR) Shares Gap Down - Should You Sell?

Key Points

• USA Rare Earth (NASDAQ:USAR) shares gapped down from a previous close of $31.59 to an opening price of $29.00, last trading at $27.45 with significant volume.
• Wall Street analysts have mixed opinions on USAR, with the stock receiving a "sell" rating from Wall Street Zen and a "buy" rating from Canaccord Genuity, while average price targets among analysts vary.
• Major insider activity includes Director Michael Blitzer selling over 2 million shares at an average price of $15.75, raising concerns about insider confidence in the company's stock performance.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $31.59, but opened at $29.00. USA Rare Earth shares last traded at $27.45, with a volume of 6,509,490 shares trading hands.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on USAR shares. Wall Street Zen lowered USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Roth Capital set a $40.00 price objective on shares of USA Rare Earth in a research note on Friday, October 10th. Canaccord Genuity Group raised their price target on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a research report on Tuesday, September 30th. William Blair started coverage on USA Rare Earth in a research report on Monday. They issued an "outperform" rating on the stock. Finally, Cantor Fitzgerald assumed coverage on 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. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $26.00.

USA Rare Earth Price Performance

The company's 50-day moving average price is $19.46.

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, beating analysts' consensus estimates of ($0.13) by $0.05.

Insider Buying and Selling

In related news, Director Michael Blitzer sold 2,091,849 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was 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 Securities & Exchange Commission, which can be accessed through this hyperlink. 46.60% of the stock is currently owned by insiders.

Institutional Trading of USA Rare Earth

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. NewEdge Advisors LLC lifted its position in USA Rare Earth by 158.2% in 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 holdings in 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 valued at $29,000 after acquiring an additional 2,612 shares during the period. Osaic Holdings Inc. bought a new stake in USA Rare Earth during the second quarter valued at about $38,000. Titleist Asset Management LLC increased its holdings in shares of USA Rare Earth by 20.2% in the second quarter. Titleist Asset Management LLC now owns 29,380 shares of the company's stock worth $322,000 after purchasing an additional 4,930 shares during the last quarter. Finally, Apollon Wealth Management LLC bought a new stake in shares of USA Rare Earth in the third quarter worth about $174,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.