USA Rare Earth (NASDAQ:USAR) Stock Price Down 4.8% - Here's What Happened

Key Points

• USA Rare Earth shares fell 4.8% in mid-day trading, with the stock dipping as low as $16.89 before last trading at $17.31, on volume well below its average daily level.
• Despite the pullback, Wall Street analysts remain broadly bullish: nine analysts rate the stock a Buy, one rates it a Sell, and the consensus price target is $36.83, well above current levels.
• The company reported a smaller-than-expected quarterly loss of $0.12 per share versus estimates for a $0.16 loss, while insiders and institutions have also been actively trading the stock recently.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price was down 4.8% during mid-day trading on Wednesday . The stock traded as low as $16.89 and last traded at $17.31. 8,013,990 shares were traded during trading, a decline of 54% from the average daily volume of 17,537,518 shares. The stock had previously closed at $18.19.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on USAR. Canaccord Genuity Group boosted their target price on USA Rare Earth from $29.00 to $32.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Needham & Company LLC began coverage on USA Rare Earth in a report on Monday, June 1st. They set a "buy" rating and a $39.00 price objective for the company. Weiss Ratings upgraded shares of USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Roth Capital reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Thursday, June 4th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $40.00 target price on shares of USA Rare Earth in a research note on Thursday, June 4th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, USA Rare Earth has a consensus rating of "Moderate Buy" and a consensus price target of $36.83.

USA Rare Earth Stock Performance

The firm's 50-day simple moving average is $23.19 and its 200 day simple moving average is $20.50. The company has a market cap of $3.86 billion, a P/E ratio of -4.42 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.04. The company had revenue of $5.70 million during the quarter. As a group, research analysts forecast that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the transaction, the director owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 9.10% of the company's stock.

Institutional Trading of USA Rare Earth

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.