USA Rare Earth (NASDAQ:USAR) Trading Down 15.3% - Here's Why

Key Points

• USA Rare Earth Inc. (NASDAQ:USAR) saw its stock price decline by 15.3%, trading as low as $28.36, with a significant increase in trading volume of 457% over its average.
• Multiple analysts have downgraded the stock, with Wall Street Zen changing its rating from "hold" to "sell" and Weiss Ratings maintaining a "sell (d-)" rating, while Canaccord Genuity Group raised its price target to $22.00.
• Insider selling included Director Michael Blitzer offloading over 2 million shares for approximately $32.9 million, highlighting notable corporate activity in the company.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was down 15.3% during mid-day trading on Thursday . The stock traded as low as $28.36 and last traded at $28.54. Approximately 25,187,270 shares were traded during mid-day trading, an increase of 457% from the average daily volume of 4,524,197 shares. The stock had previously closed at $33.68.

Wall Street Analyst Weigh In

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

USA Rare Earth Trading Down 15.3%

The firm's 50 day moving average is $18.64.

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

Insider Buying and Selling at USA Rare Earth

In related news, Director Michael Blitzer sold 2,091,849 shares of USA Rare Earth stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $15.75, for a total transaction of $32,946,621.75. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 46.60% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Several institutional investors have recently bought and sold shares of the business. NewEdge Advisors LLC increased its holdings in 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 buying an additional 1,424 shares during the period. SBI Securities Co. Ltd. increased its holdings in USA Rare Earth by 10,448.0% during the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock valued at $29,000 after buying an additional 2,612 shares during the period. Osaic Holdings Inc. purchased a new position in USA Rare Earth during the second quarter valued at approximately $38,000. Titleist Asset Management LLC increased its holdings in USA Rare Earth by 20.2% during the second quarter. Titleist Asset Management LLC now owns 29,380 shares of the company's stock valued at $322,000 after buying an additional 4,930 shares during the period. Finally, LMR Partners LLP purchased a new position in USA Rare Earth during the second quarter valued at approximately $145,000.

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.

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