USA Rare Earth (NASDAQ:USAR) Trading 6.2% Higher - Should You Buy?

Key Points

• USA Rare Earth Inc.'s stock price rose by 6.2% to $16.22, with over 3.3 million shares traded, indicating significant investor interest.
• Analysts have mixed ratings on USAR, with three giving it a Buy rating and a consensus price target of $16.00.
• Insider activity saw Director Michael Blitzer selling over 2 million shares for approximately $32.9 million, while institutional investors have significantly increased their stakes in the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price traded up 6.2% during mid-day trading on Friday . The company traded as high as $16.27 and last traded at $16.22. 3,379,024 shares changed hands during trading, an increase of 41% from the average session volume of 2,399,969 shares. The stock had previously closed at $15.27.

Wall Street Analyst Weigh In

Several analysts recently issued reports on USAR shares. Wall Street Zen lowered USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a report on Friday, June 13th. Canaccord Genuity Group started coverage on USA Rare Earth in a report on Friday, June 13th. They set a "buy" rating and a $17.00 target price on the stock. Finally, 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. Three analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $16.00.

USA Rare Earth Price Performance

The business has a 50 day simple moving average of $13.30.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings results on Monday, August 11th. The company reported ($0.08) EPS for the quarter, beating 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 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Lighthouse Investment Partners LLC bought a new position in USA Rare Earth during the 2nd quarter worth $329,000. Raymond James Financial Inc. bought a new position in USA Rare Earth during the 2nd quarter worth $223,000. LMR Partners LLP bought a new position in USA Rare Earth during the 2nd quarter worth $145,000. NewEdge Advisors LLC raised its position in USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after purchasing an additional 1,424 shares during the last quarter. Finally, Diametric Capital LP bought a new position in USA Rare Earth during the 2nd quarter worth $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.