USA Rare Earth (NASDAQ:USAR) Stock Price Down 6.1% - Should You Sell?

Key Points

• Shares fell about 6.1% to roughly $18.90 on Friday (intraday low $18.49) with ~10.87M shares traded, about a 53% decline versus average session volume.
• Multiple analysts have raised targets (Roth MKM and Cantor Fitzgerald to $35, Canaccord to $33), and the consensus rating is a Moderate Buy with an average target of $34.33.
• Insider buying was reported: Director Michael Blitzer purchased 100,000 shares at about $21.44, and corporate insiders now own 46.6% of the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price fell 6.1% during mid-day trading on Friday . The company traded as low as $18.49 and last traded at $18.90. 10,874,320 shares traded hands during trading, a decline of 53% from the average session volume of 23,045,795 shares. The stock had previously closed at $20.13.

Analysts Set New Price Targets

USAR has been the topic of several recent research reports. Roth Mkm raised their price objective on USA Rare Earth from $25.00 to $35.00 and gave the stock a "buy" rating in a research note on Monday, January 26th. Cantor Fitzgerald boosted their target price on 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 reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a report on Monday, December 29th. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They issued a "buy" rating for the company. Finally, Canaccord Genuity Group increased their price objective on shares of USA Rare Earth from $23.00 to $33.00 and gave the company a "buy" rating in a research report on Tuesday, January 27th. Six analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $34.33.

USA Rare Earth Stock Down 6.0%

The company has a market capitalization of $2.51 billion, a PE ratio of -36.38 and a beta of 0.93. The firm's 50 day simple moving average is $18.73 and its 200 day simple moving average is $18.33.

Insider Activity

In other news, Director Michael Blitzer acquired 100,000 shares of USA Rare Earth stock in a transaction that occurred on Thursday, January 29th. The shares were bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the transaction, the director directly owned 847,500 shares of the company's stock, valued at $18,170,400. This trade represents a 13.38% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, Director Carolyn Trabuco bought 1,300 shares of the company's stock in a transaction 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 transaction, the director directly owned 1,300 shares of the company's stock, valued at approximately $29,380. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 46.60% of the company's stock.

Institutional Trading of USA Rare Earth

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Calamos Advisors LLC bought a new stake in USA Rare Earth during the third quarter valued at about $3,283,000. Pier 88 Investment Partners LLC purchased a new stake in shares of USA Rare Earth during the second quarter valued at about $588,000. Farther Finance Advisors LLC lifted its position in shares of USA Rare Earth by 1,461,225.0% during the third quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after buying an additional 58,449 shares during the last quarter. Altfest L J & Co. Inc. bought a new stake in shares of USA Rare Earth in the 3rd quarter valued at about $13,554,000. Finally, Guild Investment Management Inc. purchased a new position in shares of USA Rare Earth in the 3rd quarter worth approximately $1,080,000.

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.

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