USA Rare Earth (NASDAQ:USAR) Shares Gap Up - Should You Buy?

Key Points

• USA Rare Earth stock gapped up from a previous close of $27.73 to open at $29.71, but last traded at $27.18 with a significant volume of 5,110,405 shares.
• Analysts have given mixed ratings on the stock, with four analysts recommending a "Buy" and one issuing a "Sell," leading to an average rating of "Moderate Buy" with a consensus price target of $26.00.
• Major insider activity was noted as Director Michael Blitzer sold over 2 million shares at an average price of $15.75, representing a significant trade valued at approximately $32.95 million.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $27.73, but opened at $29.71. USA Rare Earth shares last traded at $27.18, with a volume of 5,110,405 shares.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on USAR shares. Wall Street Zen downgraded shares of USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Cantor Fitzgerald began coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They issued an "overweight" rating and a $16.00 price target on the stock. William Blair began coverage on USA Rare Earth in a research report on Monday. They set an "outperform" rating for the company. 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 research report on Tuesday, September 30th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a research note on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, USA Rare Earth has an average rating of "Moderate Buy" and a consensus price target of $26.00.

USA Rare Earth Stock Up 13.5%

The firm's 50 day moving average is $19.14.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its 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 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 value of $32,946,621.75. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 46.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds have recently modified their holdings of USAR. Newtyn Management LLC acquired a new stake in shares of USA Rare Earth in the first quarter valued at $4,114,000. Geode Capital Management LLC grew its stake in shares of USA Rare Earth by 2,437.5% in the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock worth $7,160,000 after acquiring an additional 627,545 shares in the last quarter. Bank of America Corp DE raised its stake in shares of USA Rare Earth by 465.7% in the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after acquiring an additional 199,819 shares in the last quarter. Farther Finance Advisors LLC raised its position in USA Rare Earth by 1,461,225.0% in the 3rd quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after purchasing an additional 58,449 shares in the last quarter. Finally, Pier 88 Investment Partners LLC acquired a new stake in shares of USA Rare Earth in 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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