USA Rare Earth (NASDAQ:USAR) Trading Down 1.6% - Here's Why

Key Points

• USA Rare Earth shares fell 1.6% on Friday, trading as low as $15.12 and closing at $15.65 on lighter-than-average volume.
• Despite the dip, Wall Street sentiment remains constructive: analysts mostly rate the stock a Buy, with a consensus price target of $36.83 after several firms raised targets recently.
• The company beat quarterly EPS estimates with a loss of $0.12 per share versus expectations for a $0.16 loss, while reporting $5.7 million in revenue; insider selling also drew attention, including a director sale of 13,000 shares.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares traded down 1.6% during trading on Friday . The stock traded as low as $15.12 and last traded at $15.65. Approximately 9,774,773 shares changed hands during trading, a decline of 44% from the average session volume of 17,441,457 shares. The stock had previously closed at $15.91.

Wall Street Analysts Forecast Growth

USAR has been the subject of several recent research reports. Wedbush boosted their price target on USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a research note on Tuesday, May 12th. Cantor Fitzgerald restated an "overweight" rating and set a $40.00 price objective on shares of USA Rare Earth in a research note on Thursday, June 4th. Canaccord Genuity Group lifted their price objective on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research report on Thursday, June 4th. Finally, Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a report on Thursday, May 14th. Nine 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.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $36.83.

USA Rare Earth Trading Down 1.6%

The firm has a market cap of $3.49 billion, a price-to-earnings ratio of -3.99 and a beta of 2.45. The company's 50-day moving average is $22.76 and its 200-day moving average is $20.54.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.16) by $0.04. The firm had revenue of $5.70 million for the quarter. Equities research analysts forecast that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insider Activity at USA Rare Earth

In related news, Director Carolyn Trabuco sold 13,000 shares of the company's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the sale, the director directly owned 18,783 shares in the company, valued at $427,688.91. This represents a 40.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 9.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Sterling Capital Management LLC grew its holdings in shares of USA Rare Earth by 29.1% during the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after purchasing an additional 829 shares during the last quarter. Pier 88 Investment Partners LLC boosted its position in USA Rare Earth by 2.5% in the fourth quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock valued at $413,000 after buying an additional 840 shares in the last quarter. SBI Securities Co. Ltd. boosted its position in USA Rare Earth by 20.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock valued at $66,000 after buying an additional 936 shares in the last quarter. Advisory Services Network LLC grew its stake in shares of USA Rare Earth by 2.0% during the third quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock worth $900,000 after buying an additional 1,032 shares during the last quarter. Finally, National Bank of Canada FI grew its stake in shares of USA Rare Earth by 110.0% during the third quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock worth $36,000 after buying an additional 1,100 shares during the last quarter.

About USA Rare Earth

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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