USA Rare Earth (NASDAQ:USAR) Shares Gap Up - Still a Buy?

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) gapped up before the market opened 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.

Analysts Set New Price Targets

Several research firms have recently weighed in on USAR. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Roth Capital restated a "buy" rating on shares of USA Rare Earth in a report on Friday, June 13th. Canaccord Genuity Group started coverage on USA Rare Earth in a research note on Friday, June 13th. They set a "buy" rating and a $17.00 price target on the stock. Finally, Cantor Fitzgerald initiated coverage on USA Rare Earth in a report on Friday, August 1st. They set an "overweight" rating and a $16.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus price target of $16.00.

USA Rare Earth Trading Up 4.1%

The company's 50 day moving average is $13.14.

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, topping the consensus estimate of ($0.13) by $0.05.

Insider Activity

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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Large investors have recently modified their holdings of the stock. NewEdge Advisors LLC boosted its stake in USA Rare Earth by 158.2% in the second 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 during the last quarter. SBI Securities Co. Ltd. boosted its position in shares of 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 worth $29,000 after purchasing an additional 2,612 shares in the last quarter. LMR Partners LLP bought a new stake in USA Rare Earth in the 2nd quarter valued at $145,000. Titleist Asset Management LLC bought a new stake in USA Rare Earth in the 1st quarter valued at $145,000. Finally, Diametric Capital LP bought a new stake in USA Rare Earth in the 2nd quarter valued at $147,000.

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.