USA Rare Earth (NASDAQ:USAR) Stock Price Down 12.5% - Here's Why

Key Points

• USA Rare Earth shares fell 12.5% on Thursday to $20.60 (intraday low $20.46) with ~20.8M shares traded, about 26% below the average session volume and down from a prior close of $23.53.
• Analysts hold a “Moderate Buy” consensus (six Buy, one Sell) with an average price target of $34.33, and several firms recently raised targets (Canaccord to $33, Cantor Fitzgerald to $35).
• Insiders increased positions: Director Michael Blitzer bought 100,000 shares at $21.44 (~$2.14M) and director Carolyn Trabuco bought 1,300 shares on Jan 29, contributing to insiders’ ~46.6% ownership of the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares fell 12.5% during trading on Thursday . The stock traded as low as $20.46 and last traded at $20.60. 20,813,982 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 28,158,398 shares. The stock had previously closed at $23.53.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on USAR shares. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a report on Monday, December 8th. Canaccord Genuity Group lifted their price target on USA Rare Earth from $23.00 to $33.00 and gave the company a "buy" rating in a research report on Tuesday, January 27th. Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. William Blair assumed coverage on USA Rare Earth in a report on Monday, October 20th. They set an "outperform" rating for the company. Finally, Cantor Fitzgerald upped their price target on USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $34.33.

USA Rare Earth Price Performance

The company has a market cap of $2.73 billion, a P/E ratio of -39.62 and a beta of 0.93. The company has a 50 day moving average of $17.24 and a 200-day moving average of $17.61.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.19).

Insiders Place Their Bets

In related news, Director Carolyn Trabuco bought 1,300 shares of the business's stock in a transaction that occurred on Thursday, January 29th. The stock was bought at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the transaction, the director owned 1,300 shares of the company's stock, valued at approximately $29,380. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Michael Blitzer bought 100,000 shares of USA Rare Earth stock in a transaction that occurred on Thursday, January 29th. The stock was purchased at an average cost of $21.44 per share, for a total transaction of $2,144,000.00. Following the purchase, the director owned 847,500 shares of the company's stock, valued at $18,170,400. The trade was a 13.38% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 46.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Calamos Advisors LLC purchased a new stake in shares of USA Rare Earth during the third quarter valued at approximately $3,283,000. Pier 88 Investment Partners LLC bought a new stake in USA Rare Earth during the 2nd quarter valued at $588,000. Farther Finance Advisors LLC boosted its stake in shares of USA Rare Earth by 1,461,225.0% during 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. Altfest L J & Co. Inc. bought a new stake in shares of USA Rare Earth during the 3rd quarter valued at about $13,554,000. Finally, Sovran Advisors LLC purchased a new position in shares of USA Rare Earth during the third quarter valued at about $3,832,000.

About USA Rare Earth

USA Rare Earth NASDAQ: USAR is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.

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