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

Key Points

• USA Rare Earth Inc.'s stock price gapped up from $32.61 to an opening price of $38.57 before trading at $42.26 with significant volume.
• Recent analyst reports present mixed ratings, with Roth Capital setting a target price of $40.00 and Wall Street Zen downgrading the stock to a "sell" rating.
• Insider transactions saw Director Michael Blitzer sell over 2 million shares for approximately $32.9 million, with insiders currently holding 46.60% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $32.61, but opened at $38.57. USA Rare Earth shares last traded at $42.26, with a volume of 19,085,849 shares.

Wall Street Analysts Forecast Growth

USAR has been the topic of several recent analyst reports. Roth Capital set a $40.00 target price on USA Rare Earth in a report on Friday. Wall Street Zen cut USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Canaccord Genuity Group boosted their target price on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a report on Tuesday, September 30th. Cantor Fitzgerald initiated coverage on USA Rare Earth in a report on Friday, August 1st. They set an "overweight" rating and a $16.00 target price on the stock. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a report on Wednesday, October 8th. Three 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 firm's fifty day simple moving average is $17.27.

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

Insider Transactions at USA Rare Earth

In other USA Rare Earth news, Director Michael Blitzer sold 2,091,849 shares of the business's stock in a transaction on 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 filing with the SEC, which is available 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 USAR. Titleist Asset Management LLC purchased a new position in shares of USA Rare Earth during the 1st quarter valued at $145,000. Newtyn Management LLC purchased a new position in shares of USA Rare Earth during the 1st quarter valued at $4,114,000. International Assets Investment Management LLC purchased a new position in shares of USA Rare Earth during the 2nd quarter valued at $250,000. MMCAP International Inc. SPC purchased a new position in shares of USA Rare Earth during the 2nd quarter valued at $261,000. Finally, Pier 88 Investment Partners LLC purchased a new position in shares of USA Rare Earth during the 2nd quarter valued at $588,000.

About USA Rare Earth

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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