USA Rare Earth (NASDAQ:USAR) Stock Price Down 4% - Here's What Happened

Key Points

• Stock down 4%: USA Rare Earth shares fell about 4% to $15.28 (intraday low $15.08) on Monday with ~8.3 million shares traded, a 56% drop versus its average daily volume; market cap is about $3.33 billion and the 50/200-day SMAs are ~$19.55/$18.86.
• Analyst sentiment: Six analysts rate the stock a Buy and one a Sell, giving an average rating of "Moderate Buy" and an average target price of $33, with several firms recently raising targets to as high as $35.
• Fundamentals and insider activity: The company missed Q1 estimates with EPS of ($0.19) vs. ($0.12) expected and $1.64M revenue, while insiders increased holdings (Director Michael Blitzer bought 100,000 shares at $21.44; insiders now own 46.60% of the stock).

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price dropped 4% on Monday . The stock traded as low as $15.08 and last traded at $15.28. Approximately 8,304,401 shares traded hands during trading, a decline of 56% from the average daily volume of 18,942,455 shares. The stock had previously closed at $15.92.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on USAR shares. Benchmark began coverage on USA Rare Earth in a research report on Wednesday, January 21st. They issued a "buy" rating for the company. Roth Mkm upped their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a research note on Monday, January 26th. Cantor Fitzgerald raised their price target on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research report on Friday, January 30th. Weiss Ratings restated a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday, March 27th. Finally, UBS Group reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. Six research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, USA Rare Earth has an average rating of "Moderate Buy" and an average target price of $33.00.

USA Rare Earth Price Performance

The stock has a market cap of $3.33 billion, a price-to-earnings ratio of -5.09 and a beta of 1.34. The stock's 50 day simple moving average is $19.55 and its two-hundred day simple moving average is $18.86.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data on Monday, March 30th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter.

Insider Transactions at USA Rare Earth

In related news, Director Michael Blitzer bought 100,000 shares of the company's stock in a transaction dated Thursday, January 29th. The stock was acquired at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the acquisition, the director owned 847,500 shares in the company, valued at approximately $18,170,400. This represents a 13.38% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Carolyn Trabuco bought 1,300 shares of the business's stock in a transaction that occurred on Thursday, January 29th. The shares were bought at an average price of $22.60 per share, with a total value of $29,380.00. Following the transaction, the director directly owned 1,300 shares in the company, valued at $29,380. This trade represents a ∞ 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 company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of USAR. Diametric Capital LP bought a new position in shares of USA Rare Earth during the second quarter valued at $147,000. NewEdge Advisors LLC increased its position in shares of USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after purchasing an additional 1,424 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of USA Rare Earth during the 2nd quarter worth about $223,000. Lighthouse Investment Partners LLC bought a new position in USA Rare Earth during the 2nd quarter valued at about $329,000. Finally, Bank of America Corp DE boosted its position in 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 valued at $2,659,000 after buying an additional 199,819 shares in the last quarter.

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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