USA Rare Earth (NASDAQ:USAR) Stock Price Down 3.2% - What's Next?

Key Points

• USA Rare Earth shares fell 3.2% on Wednesday to last trade at $22.03 (intraday low $21.46) on about 12.6 million shares, below the average volume; the stock trades above its 50- and 200-day moving averages (~$18.6) with a market cap of $4.8 billion and a negative PE of -7.34.
• Wall Street sentiment is broadly positive with a consensus rating of "Moderate Buy" and an average target of $34.20 (analyst targets range up to $45), driven by eight Buy ratings versus one Sell.
• Significant insider and institutional activity: Director Michael Blitzer bought 100,000 shares at ~$21.44 and insiders own 46.6% of the stock, while large funds (Alyeska, Vanguard, State Street and others) materially increased or established positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price dropped 3.2% during trading on Wednesday . The company traded as low as $21.46 and last traded at $22.03. Approximately 12,592,504 shares changed hands during trading, a decline of 32% from the average daily volume of 18,614,301 shares. The stock had previously closed at $22.77.

Wall Street Analyst Weigh In

USAR has been the subject of a number of research analyst reports. Northland Securities initiated coverage on USA Rare Earth in a report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 target price for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Friday, March 27th. Wedbush began coverage on USA Rare Earth in a research note on Monday, April 20th. They issued an "outperform" rating and a $29.00 price objective for the company. Cantor Fitzgerald lifted their price objective on USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Finally, Canaccord Genuity Group lifted their price objective on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Eight equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, USA Rare Earth has a consensus rating of "Moderate Buy" and a consensus target price of $34.20.

USA Rare Earth Price Performance

The firm has a 50 day moving average of $18.58 and a two-hundred day moving average of $18.63. The stock has a market cap of $4.80 billion, a PE ratio of -7.34 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its earnings results on Monday, March 30th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.07). The company had revenue of $1.64 million during the quarter. As a group, equities analysts anticipate that USA Rare Earth Inc. will post -0.76 EPS for the current fiscal year.

Insider Activity at USA Rare Earth

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. increased its position in USA Rare Earth by 44.0% during 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 period. Bayshore Capital Advisors LLC acquired a new position in USA Rare Earth during the fourth quarter worth approximately $102,378,000. Vanguard Group Inc. increased its position in 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 during the period. State Street Corp increased its position in USA Rare Earth by 78.4% during the fourth quarter. State Street Corp now owns 5,032,866 shares of the company's stock worth $59,891,000 after buying an additional 2,212,177 shares during the period. Finally, Inflection Point Holdings II LLC acquired a new position in USA Rare Earth during the fourth quarter worth approximately $37,188,000.

USA Rare Earth Company Profile

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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