USA Rare Earth (NASDAQ:USAR) Stock Price Down 8.8% - Here's What Happened

Key Points

• Stock drop and volume spike: USA Rare Earth shares fell about 8.8% (trading as low as $15.80, last $16.24) while volume jumped to ~33.8M shares—about 66% above the average.
• Positive analyst sentiment: Six analysts rate the stock a Buy vs one Sell, giving a consensus "Moderate Buy" and an average price target of $34.33 after several recent target increases to the $33–$35 range.
• Notable insider buying and high insider ownership: Director Michael Blitzer bought 100,000 shares at $21.44 (raising his stake to 847,500 shares) and company insiders collectively own 46.6% of the stock.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was down 8.8% on Friday . The company traded as low as $15.80 and last traded at $16.24. Approximately 33,822,126 shares traded hands during mid-day trading, an increase of 66% from the average daily volume of 20,324,588 shares. The stock had previously closed at $17.81.

Wall Street Analysts Forecast Growth

USAR has been the subject of several recent research reports. UBS Group reiterated a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They set a "buy" rating for the company. Cantor Fitzgerald increased their price target on shares of USA Rare Earth from $28.00 to $35.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. Roth Mkm boosted their price objective on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Finally, Canaccord Genuity Group upped 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 note on Tuesday, January 27th. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $34.33.

USA Rare Earth Price Performance

The stock has a market capitalization of $2.15 billion, a PE ratio of -31.21 and a beta of 1.05. The company has a 50 day moving average price of $20.23 and a 200-day moving average price of $18.68.

Insider Activity

In related news, Director Michael Blitzer purchased 100,000 shares of the firm's stock in a transaction that occurred on Thursday, January 29th. The stock was bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the purchase, the director directly owned 847,500 shares in the company, valued at approximately $18,170,400. This represents a 13.38% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Carolyn Trabuco acquired 1,300 shares of the stock in a transaction on Thursday, January 29th. The stock was bought at an average price of $22.60 per share, with a total value of $29,380.00. Following the completion of the acquisition, the director directly owned 1,300 shares of the company's stock, valued at $29,380. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Larson Financial Group LLC lifted its stake in shares of USA Rare Earth by 217.5% in the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after purchasing an additional 1,433 shares during the period. National Bank of Canada FI grew its stake in USA Rare Earth by 110.0% in the third quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock worth $36,000 after purchasing an additional 1,100 shares during the period. NewEdge Advisors LLC raised its holdings in 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 purchasing an additional 1,424 shares in the last quarter. Center for Financial Planning Inc. purchased a new position in USA Rare Earth during the fourth quarter valued at $28,000. Finally, Havemeyer Place LP purchased a new position in USA Rare Earth during the fourth quarter valued at $33,000.

USA Rare Earth Company Profile

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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