USA Rare Earth (NASDAQ:USAR) Stock Price Down 1.5% - Should You Sell?

Key Points

• USA Rare Earth shares slipped 1.5% to $19.46 on Friday (intraday low $19.13) with 11.4M shares traded—about 45% below the average; the company has a $2.58B market cap and a negative P/E.
• Analysts are broadly positive: six Buy ratings versus one Sell, a consensus of Moderate Buy and an average price target of $34.33.
• There has been notable insider and institutional buying—two directors recently purchased shares (one bought 100,000 shares at $21.44), insiders own 46.6%, and large funds including Vanguard, Bayshore, Alyeska and State Street significantly increased positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded down 1.5% during trading on Friday . The stock traded as low as $19.13 and last traded at $19.46. 11,417,767 shares changed hands during trading, a decline of 45% from the average session volume of 20,828,939 shares. The stock had previously closed at $19.75.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. UBS Group reiterated a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. Benchmark began coverage on shares of USA Rare Earth in a research note on Wednesday, January 21st. They issued a "buy" rating on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. Cantor Fitzgerald increased their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. Finally, Canaccord Genuity Group boosted 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. Six investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, USA Rare Earth has an average rating of "Moderate Buy" and an average target price of $34.33.

USA Rare Earth Trading Down 1.5%

The stock's 50 day moving average price is $19.96 and its two-hundred day moving average price is $18.56. The firm has a market capitalization of $2.58 billion, a price-to-earnings ratio of -37.42 and a beta of 1.05.

Insider Activity

In other USA Rare Earth news, Director Carolyn Trabuco acquired 1,300 shares of the company's stock in a transaction dated Thursday, January 29th. The stock was acquired at an average cost of $22.60 per share, with a total value of $29,380.00. Following the purchase, the director directly owned 1,300 shares in the company, valued at approximately $29,380. This trade represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Michael Blitzer acquired 100,000 shares of USA Rare Earth stock in a transaction that occurred on Thursday, January 29th. The shares were purchased at an average cost of $21.44 per share, for a total transaction of $2,144,000.00. Following the purchase, the director directly owned 847,500 shares of the company's stock, valued at approximately $18,170,400. This trade represents a 13.38% increase in their position. The SEC filing for this purchase provides additional information. 46.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of USAR. Bayshore Capital Advisors LLC acquired a new position in shares of USA Rare Earth in the 4th quarter valued at approximately $102,378,000. Vanguard Group Inc. grew its position in shares of USA Rare Earth by 533.3% during the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock worth $71,834,000 after buying an additional 5,083,288 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in shares of USA Rare Earth by 44.0% in the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after buying an additional 3,909,455 shares during the last quarter. Inflection Point Holdings II LLC acquired a new stake in USA Rare Earth in the fourth quarter valued at $37,188,000. Finally, State Street Corp boosted its stake in USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company's stock valued at $59,891,000 after acquiring an additional 2,212,177 shares during the last quarter.

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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