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

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) shares opened at $15.81 after gapping up from a previous close of $15.27, with a trading volume of approximately 1.8 million shares.
• Investment analysts have mixed ratings for USAR, with Wall Street Zen downgrading it to a "sell" while Roth Capital and Canaccord Genuity maintained a "buy" rating, the latter setting a price target of $17.00.
• In recent insider activity, Director Michael Blitzer sold over 2 million shares at an average price of $15.75, indicating significant insider movement within the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $15.27, but opened at $15.81. USA Rare Earth shares last traded at $15.42, with a volume of 1,794,792 shares.

Analyst Upgrades and Downgrades

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

USA Rare Earth Stock Performance

The business's fifty day moving average is $13.23.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its earnings results on Monday, August 11th. The company reported ($0.08) EPS for the quarter, topping the consensus estimate 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 business's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $15.75, for a total value of $32,946,621.75. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Several hedge funds have recently modified their holdings of the stock. Newtyn Management LLC purchased a new position in shares of USA Rare Earth in the first quarter worth $4,114,000. Geode Capital Management LLC lifted its holdings 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 buying an additional 627,545 shares in the last quarter. Bank of America Corp DE increased its position in 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 worth $2,659,000 after purchasing an additional 199,819 shares during the last quarter. Pier 88 Investment Partners LLC bought a new stake in USA Rare Earth in the second quarter worth $588,000. Finally, Advisory Services Network LLC bought a new stake in USA Rare Earth in the second quarter worth $562,000.

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.