USA Rare Earth (NASDAQ:USAR) Shares Gap Up - Here's What Happened

Key Points

• USA Rare Earth shares experienced a significant increase, gapping up from a previous close of $13.74 to an opening price of $14.58.
• Analysts have mixed ratings on the stock, with three giving it a "Buy" rating and a consensus price target of $16.00 from Cantor Fitzgerald.
• Insider transactions revealed that Director Michael Blitzer sold over 2 million shares for approximately $32.9 million at an average price of $15.75.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $13.74, but opened at $14.58. USA Rare Earth shares last traded at $14.45, with a volume of 3,978,368 shares changing hands.

Analyst Upgrades and Downgrades

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

USA Rare Earth Stock Down 0.9%

The firm's 50 day moving average price is $14.54.

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

Insider Activity at USA Rare Earth

In other news, Director Michael Blitzer sold 2,091,849 shares of the company's stock in a transaction dated 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 Securities & Exchange Commission, which can be accessed through the SEC website. 46.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

Several institutional investors and hedge funds have recently modified their holdings of the business. Newtyn Management LLC acquired a new position in shares of USA Rare Earth in the 1st quarter valued at approximately $4,114,000. Geode Capital Management LLC grew its position in shares of USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after purchasing an additional 627,545 shares during the period. Bank of America Corp DE grew its position in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after purchasing an additional 199,819 shares during the period. Pier 88 Investment Partners LLC acquired a new position in shares of USA Rare Earth in the 2nd quarter valued at approximately $588,000. Finally, Advisory Services Network LLC acquired a new position in shares of USA Rare Earth in the 2nd quarter valued at approximately $562,000.

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.