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

Key Points

• USA Rare Earth (NASDAQ:USAR) shares opened at $28.00, up from a previous close of $25.96, with a trading volume of 7,299,701 shares.
• Analysts have mixed views on the stock, with three analysts rating it as a Buy and one as a Sell; the consensus rating is a "Moderate Buy" with a price target of $17.67.
• Insider transactions show that Director Michael Blitzer sold over 2 million shares for approximately $32.9 million, while corporate insiders own 46.60% of the company's stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $25.96, but opened at $28.00. USA Rare Earth shares last traded at $27.49, with a volume of 7,299,701 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Wall Street Zen lowered shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Canaccord Genuity Group boosted their price target on USA Rare Earth from $21.00 to $22.00 and gave the company a "buy" rating in a research note on Tuesday, September 30th. Roth Capital restated a "buy" rating on shares of USA Rare Earth in a research report on Monday, September 29th. Cantor Fitzgerald started coverage on shares of USA Rare Earth in a report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price target on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Saturday, September 27th. Three research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.67.

USA Rare Earth Trading Up 2.1%

The company's 50-day moving average price is $15.58.

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

Insider Transactions at USA Rare Earth

In related news, Director Michael Blitzer sold 2,091,849 shares of the business'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 SEC, which is available through this link. Corporate insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

A number of institutional investors have recently made changes to their positions in the stock. Newtyn Management LLC bought a new position in USA Rare Earth during the 1st quarter worth approximately $4,114,000. Geode Capital Management LLC grew 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 purchasing an additional 627,545 shares during the last quarter. Bank of America Corp DE grew its holdings 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 worth $2,659,000 after purchasing an additional 199,819 shares during the last quarter. Pier 88 Investment Partners LLC bought a new position in shares of USA Rare Earth in the second quarter worth approximately $588,000. Finally, Advisory Services Network LLC bought a new position in shares of USA Rare Earth in the second quarter worth approximately $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.

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