USA Rare Earth (NASDAQ:USAR) Stock Price Down 7.9% Following Insider Selling

Key Points

• The stock price of USA Rare Earth (NASDAQ:USAR) fell by 7.9% after insider selling, with 2,091,849 shares sold by Director Michael Blitzer at an average price of $15.75.
• Research analysts downgraded USA Rare Earth from a "hold" to a "sell" rating, while some firms maintained "buy" ratings with target prices of $16.00 to $17.00.
• Despite the recent downturn, USA Rare Earth topped earnings expectations by reporting a loss of ($0.08) per share, exceeding the consensus estimate of ($0.13).

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 7.9% during trading on Monday following insider selling activity. The company traded as low as $15.48 and last traded at $15.83. 3,141,269 shares changed hands during trading, an increase of 36% from the average session volume of 2,303,071 shares. The stock had previously closed at $17.19.

Specifically, Director Michael Blitzer sold 2,091,849 shares of USA Rare Earth 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 document filed with the SEC, which can be accessed through this link.

Wall Street Analyst Weigh In

A number of research firms recently commented on USAR. Cantor Fitzgerald began coverage on USA Rare Earth in a research note on Friday, August 1st. They issued an "overweight" rating and a $16.00 price objective on the stock. Canaccord Genuity Group began coverage on 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 lowered USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Roth Capital reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Friday, June 13th. Three analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $16.00.

USA Rare Earth Price Performance

The business's 50 day moving average is $13.14.

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

Institutional Investors Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently modified their holdings of the company. Lighthouse Investment Partners LLC bought a new stake in shares of USA Rare Earth during the second quarter valued at approximately $329,000. Raymond James Financial Inc. bought a new stake in shares of USA Rare Earth during the second quarter valued at approximately $223,000. LMR Partners LLP bought a new stake in shares of USA Rare Earth during the second quarter valued at approximately $145,000. NewEdge Advisors LLC increased its holdings in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after acquiring an additional 1,424 shares in the last quarter. Finally, Diametric Capital LP bought a new stake in shares of USA Rare Earth during the second quarter valued at approximately $147,000.

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.