USA Rare Earth (NASDAQ:USAR) Stock Price Down 6.9% - What's Next?

Key Points

• USA Rare Earth shares fell 6.9% on Monday, trading as low as $16.98 and closing at $17.21, well below the previous close of $18.48. Trading volume also cooled, coming in at about 9.1 million shares versus a 17.7 million-share daily average.
• Despite the decline, analyst sentiment remains largely positive: nine analysts rate the stock a Buy, with an average target price of $36.83. Recent coverage included multiple bullish ratings, including Northland’s $45 target and Needham’s $39 target.
• The company remains a development-stage rare earth and lithium play centered on the Round Top deposit in West Texas. It recently beat earnings expectations with a smaller-than-expected quarterly loss, while insider activity included a director selling 13,000 shares in June.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded down 6.9% on Monday . The stock traded as low as $16.98 and last traded at $17.21. 9,133,193 shares changed hands during trading, a decline of 48% from the average daily volume of 17,660,209 shares. The stock had previously closed at $18.48.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on USAR shares. Northland Securities began coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price target for the company. Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Roth Capital reaffirmed a "buy" rating on shares of USA Rare Earth in a report on Thursday, June 4th. Needham & Company LLC initiated coverage on USA Rare Earth in a report on Monday, June 1st. They issued a "buy" rating and a $39.00 price objective for the company. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $40.00 price objective on shares of USA Rare Earth in a report on Thursday, June 4th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $36.83.

USA Rare Earth Trading Down 6.7%

The stock has a market cap of $3.85 billion, a PE ratio of -4.40 and a beta of 2.45. The business has a fifty day simple moving average of $23.55 and a two-hundred day simple moving average of $20.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. On average, research analysts predict that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director directly owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This represents a 40.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 9.10% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB purchased a new stake in shares of USA Rare Earth during the second quarter valued at $1,612,000. Redhawk Wealth Advisors Inc. purchased a new position in USA Rare Earth in the 2nd quarter worth about $200,000. FNY Investment Advisers LLC lifted its stake in USA Rare Earth by 51,400.0% during the 2nd quarter. FNY Investment Advisers LLC now owns 30,900 shares of the company's stock valued at $666,000 after acquiring an additional 30,840 shares during the period. GK Wealth Management LLC purchased a new stake in shares of USA Rare Earth during the 2nd quarter valued at about $531,000. Finally, GAMMA Investing LLC boosted its holdings in shares of USA Rare Earth by 98.9% during the 2nd quarter. GAMMA Investing LLC now owns 3,696 shares of the company's stock valued at $80,000 after acquiring an additional 1,838 shares during the last quarter.

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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