USA Rare Earth (NASDAQ:USAR) Trading Down 10.3% - Time to Sell?

Key Points

• Shares of USA Rare Earth (NASDAQ:USAR) fell by 10.3% on Wednesday, trading as low as $31.40 and closing at $33.68 after an unusually high trade volume of over 32 million shares.
• Equities analysts have issued mixed ratings, with Weiss Ratings reiterating a "sell" rating while other firms like Canaccord Genuity and Roth Capital set optimistic price targets of up to $40.00.
• Insider transaction activity saw Director Michael Blitzer sell over 2 million shares at an average price of $15.75, raising questions about investment sentiment among insiders.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded down 10.3% on Wednesday . The company traded as low as $31.40 and last traded at $33.68. 32,410,204 shares were traded during mid-day trading, an increase of 633% from the average session volume of 4,420,370 shares. The stock had previously closed at $37.54.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a report on Wednesday, October 8th. Wall Street Zen downgraded USA Rare Earth from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Cantor Fitzgerald assumed coverage on USA Rare Earth in a report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price objective on the stock. Canaccord Genuity Group increased their price objective on USA Rare Earth from $21.00 to $22.00 and gave the stock a "buy" rating in a report on Tuesday, September 30th. Finally, Roth Capital set a $40.00 price objective on USA Rare Earth in a report on Friday, October 10th. Three equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, USA Rare Earth presently has an average rating of "Moderate Buy" and an average target price of $26.00.

USA Rare Earth Stock Down 10.3%

The business has a 50-day moving average of $18.23.

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

Insider Transactions at USA Rare Earth

In other USA Rare Earth news, Director Michael Blitzer sold 2,091,849 shares of the company'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 transaction of $32,946,621.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 46.60% of the stock is owned by insiders.

Institutional Investors Weigh In On USA Rare Earth

A number of large investors have recently added to or reduced their stakes in the stock. Newtyn Management LLC bought a new stake in shares of USA Rare Earth in the first quarter valued at approximately $4,114,000. Geode Capital Management LLC boosted its position in shares of USA Rare Earth by 2,437.5% in the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after acquiring an additional 627,545 shares during the period. Bank of America Corp DE boosted its position in shares of USA Rare Earth by 465.7% in the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after acquiring an additional 199,819 shares during the period. Farther Finance Advisors LLC boosted its position in shares of USA Rare Earth by 1,461,225.0% in the third quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after acquiring an additional 58,449 shares during the period. Finally, Pier 88 Investment Partners LLC bought a new stake in shares of USA Rare Earth in the second quarter valued at approximately $588,000.

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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