USA Rare Earth (NASDAQ:USAR) Stock Price Down 7.8% - Here's Why

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) shares dropped 7.8% during trading on Wednesday, reaching a low of $17.46 before closing at $17.55, with trading volume increasing by 110% from the average daily volume.
• The company reported quarterly earnings of ($0.08) per share, which exceeded the consensus estimate of ($0.13), signaling a positive performance.
• Institutional investors have shown strong interest in USAR, with notable purchases by firms like Geode Capital Management, which increased its stake by 2,437.5% during the second quarter.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares were down 7.8% during mid-day trading on Wednesday . The stock traded as low as $17.46 and last traded at $17.55. Approximately 4,637,673 shares traded hands during trading, an increase of 110% from the average daily volume of 2,204,297 shares. The stock had previously closed at $19.04.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on USAR shares. Cantor Fitzgerald started coverage on USA Rare Earth in a research report on Friday, August 1st. They set an "overweight" rating and a $16.00 price target on the stock. Canaccord Genuity Group initiated coverage on USA Rare Earth in a research report on Friday, June 13th. They set a "buy" rating and a $17.00 price target on the stock. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Finally, Wall Street Zen lowered USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday.

USA Rare Earth Price Performance

The company has a 50-day moving average of $12.99.

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

Insider Activity at USA Rare Earth

In other news, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 46.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in USAR. Newtyn Management LLC purchased a new position in shares of USA Rare Earth in the 1st quarter valued at approximately $4,114,000. Geode Capital Management LLC lifted its stake in shares of USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after purchasing an additional 627,545 shares during the period. Bank of America Corp DE raised its stake in USA Rare Earth by 465.7% during 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 during the last quarter. Pier 88 Investment Partners LLC purchased a new position in USA Rare Earth during the second quarter valued at $588,000. Finally, Lighthouse Investment Partners LLC purchased a new position in USA Rare Earth during the second quarter valued at $329,000.

About USA Rare Earth

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.