USA Rare Earth (NASDAQ:USAR) Trading Down 2.1% - Should You Sell?

Key Points

• USA Rare Earth shares fell 2.1% on Friday, trading as low as $18.30 and closing at $18.48 on lighter-than-average volume.
• Wall Street remains mostly bullish on the stock: nine analysts rate it a Buy, one rates it a Sell, and the consensus price target is $36.83, well above the current share price.
• The company is still early-stage but making progress on its U.S. rare earth and lithium project at Round Top in Texas, while its latest quarterly results showed a smaller-than-expected loss of $0.12 per share.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were down 2.1% during trading on Friday . The company traded as low as $18.30 and last traded at $18.48. Approximately 5,906,285 shares were traded during mid-day trading, a decline of 67% from the average session volume of 17,731,211 shares. The stock had previously closed at $18.87.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on USAR shares. Needham & Company LLC initiated coverage on shares of USA Rare Earth in a research note on Monday, June 1st. They set a "buy" rating and a $39.00 price objective on the stock. Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a report on Thursday, June 4th. Northland Securities initiated coverage on shares of USA Rare Earth in a research report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price target on the stock. Finally, Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $36.83.

USA Rare Earth Price Performance

The company has a market cap of $4.12 billion, a price-to-earnings ratio of -4.71 and a beta of 2.45. The stock has a 50-day moving average price of $23.63 and a 200 day moving average price of $20.42.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. The business had revenue of $5.70 million for the quarter. Sell-side analysts expect that USA Rare Earth Inc. will post -0.35 EPS for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On USA Rare Earth

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $1,612,000. Redhawk Wealth Advisors Inc. bought a new stake in shares of USA Rare Earth in the second quarter valued at about $200,000. FNY Investment Advisers LLC boosted its position in shares of USA Rare Earth by 51,400.0% during the second quarter. FNY Investment Advisers LLC now owns 30,900 shares of the company's stock worth $666,000 after buying an additional 30,840 shares during the period. GK Wealth Management LLC acquired a new position in shares of USA Rare Earth during the second quarter worth about $531,000. Finally, GAMMA Investing LLC grew its holdings in shares of USA Rare Earth by 98.9% during the second quarter. GAMMA Investing LLC now owns 3,696 shares of the company's stock worth $80,000 after buying an additional 1,838 shares in the last quarter.

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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