USA Rare Earth (NASDAQ:USAR) Stock Price Down 8.5% - Here's Why

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) experienced an 8.5% decline in stock price during mid-day trading, dropping to $24.46 from a previous close of $26.73.
• Analysts' ratings for USA Rare Earth are mixed, with four analysts issuing a Buy rating and one a Sell rating, resulting in an average consensus target price of $26.00.
• Significant insider activity was noted as Director Michael Blitzer sold over 2 million shares at an average price of $15.75, raising questions about the company's stock outlook.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price was down 8.5% during mid-day trading on Wednesday . The company traded as low as $23.40 and last traded at $24.46. Approximately 19,131,497 shares changed hands during trading, an increase of 290% from the average daily volume of 4,905,157 shares. The stock had previously closed at $26.73.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on USAR shares. Cantor Fitzgerald started coverage on USA Rare Earth in a research note on Friday, August 1st. They set an "overweight" rating and a $16.00 price objective for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Wednesday, October 8th. Canaccord Genuity Group lifted their target price on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a report on Tuesday, September 30th. William Blair began coverage on USA Rare Earth in a report on Monday. They issued an "outperform" rating for the company. Finally, Roth Capital set a $40.00 target price on USA Rare Earth in a report on Friday, October 10th. Four investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $26.00.

USA Rare Earth Stock Down 8.5%

The firm has a fifty day simple moving average of $19.61.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its 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.

Insider Activity at USA Rare Earth

In related news, Director Michael Blitzer sold 2,091,849 shares of USA Rare Earth stock in a transaction 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 document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 46.60% of the stock is owned by insiders.

Institutional Trading of USA Rare Earth

Several large investors have recently modified their holdings of USAR. NewEdge Advisors LLC grew its holdings in shares of USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after acquiring an additional 1,424 shares during the period. SBI Securities Co. Ltd. grew its holdings in shares of USA Rare Earth by 10,448.0% in the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock worth $29,000 after acquiring an additional 2,612 shares during the period. Osaic Holdings Inc. bought a new stake in shares of USA Rare Earth in the second quarter worth $38,000. Titleist Asset Management LLC bought a new stake in shares of USA Rare Earth in the first quarter worth $145,000. Finally, LMR Partners LLP bought a new stake in shares of USA Rare Earth in the second quarter worth $145,000.

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.

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