USA Rare Earth (NASDAQ:USAR) Stock Price Down 2% - Should You Sell?

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) saw its stock price fall by 2%, closing at $23.57, while trading volume was significantly higher than its average.
• Analysts have mixed views on USAR; while William Blair assigned an "outperform" rating, Weiss Ratings gave it a "sell (d-)" rating.
• Insiders hold 46.60% of the company's stock, and there have been notable transactions, including a significant sale of over 2 million shares by a director.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 2% during trading on Friday . The company traded as low as $23.50 and last traded at $23.57. 11,680,728 shares changed hands during mid-day trading, an increase of 136% from the average session volume of 4,954,270 shares. The stock had previously closed at $24.05.

Analyst Upgrades and Downgrades

A number of research firms recently commented on USAR. William Blair began coverage on USA Rare Earth in a report on Monday. They issued an "outperform" rating for the company. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday. Canaccord Genuity Group lifted their price objective on USA Rare Earth from $21.00 to $22.00 and gave the company a "buy" rating in a report on Tuesday, September 30th. Cantor Fitzgerald started coverage on USA Rare Earth in a research note on Friday, August 1st. They set an "overweight" rating and a $16.00 target price for the company. Finally, Wall Street Zen cut USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, USA Rare Earth presently has an average rating of "Moderate Buy" and an average price target of $26.00.

USA Rare Earth Price Performance

The stock has a 50 day moving average of $19.89.

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

Insider Activity

In related news, Director Michael Blitzer sold 2,091,849 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total transaction of $32,946,621.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Altfest L J & Co. Inc. bought a new position in shares of USA Rare Earth during the third quarter worth about $13,554,000. Newtyn Management LLC bought a new position in shares of USA Rare Earth during the first quarter worth about $4,114,000. Geode Capital Management LLC grew its holdings in shares of USA Rare Earth by 2,437.5% during 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 grew its holdings in shares of USA Rare Earth by 465.7% during the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after buying an additional 199,819 shares in the last quarter. Finally, Calamos Advisors LLC bought a new position in USA Rare Earth in the third quarter valued at approximately $3,283,000.

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.

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