USA Rare Earth (NASDAQ:USAR) Stock Price Down 5% After Insider Selling

Key Points

• USA Rare Earth (NASDAQ:USAR) shares declined by 5% during Friday's trading session, closing at $16.89 after reaching a low of $16.40.
• Analysts have mixed perspectives, with Roth Capital maintaining a "buy" rating and Canaccord Genuity setting a $17.00 target price, while Wall Street Zen upgraded the rating from "strong sell" to "hold."
• The company reported earnings of ($0.08) per share, exceeding the expected loss of ($0.13), indicating better-than-anticipated performance in the last quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was down 5% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $16.40 and last traded at $16.89. Approximately 2,129,745 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 2,282,336 shares. The stock had previously closed at $17.78.

Specifically, Director Michael Blitzer sold 2,091,849 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a report on Friday, June 13th. Canaccord Genuity Group started coverage on shares of USA Rare Earth in a research note on Friday, June 13th. They issued a "buy" rating and a $17.00 price objective on the stock. Wall Street Zen downgraded shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Cantor Fitzgerald began coverage on shares of USA Rare Earth in a research report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $16.00.

USA Rare Earth Price Performance

The firm's fifty day moving average is $13.09.

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

Hedge Funds Weigh In On USA Rare Earth

Several institutional investors have recently added to or reduced their stakes in USAR. Newtyn Management LLC bought a new stake in USA Rare Earth in the first quarter worth about $4,114,000. Geode Capital Management LLC grew its position in shares of USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after acquiring an additional 627,545 shares during the period. Bank of America Corp DE raised its holdings in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after purchasing an additional 199,819 shares during the period. Pier 88 Investment Partners LLC purchased a new position in USA Rare Earth in the second quarter valued at approximately $588,000. Finally, Advisory Services Network LLC purchased a new position in USA Rare Earth in the second quarter valued at approximately $562,000.

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.