USA Rare Earth (NASDAQ:USAR) Trading Down 2.7% - Should You Sell?

Key Points

• USA Rare Earth shares fell 2.7% in midday trading, briefly touching $14.82 before last trading at $15.23, below the prior close of $15.65.
• Analyst sentiment remains constructive: nine analysts rate the stock a Buy, with an average rating of “Moderate Buy” and an average price target of $36.83, though one analyst recently downgraded it to Sell.
• The company beat earnings expectations last quarter, posting a loss of $0.12 per share versus estimates of a $0.16 loss, on revenue of $5.7 million; insiders also saw a notable share sale from Director Carolyn Trabuco.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares were down 2.7% during mid-day trading on Monday . The stock traded as low as $14.82 and last traded at $15.23. Approximately 14,895,674 shares were traded during mid-day trading, a decline of 15% from the average session volume of 17,422,773 shares. The stock had previously closed at $15.65.

Analysts Set New Price Targets

A number of research firms recently weighed in on USAR. Benchmark restated 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 research note on Thursday, June 4th. Northland Securities assumed coverage on shares of USA Rare Earth in a report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price target for the company. Cantor Fitzgerald reissued an "overweight" rating and issued a $40.00 price objective on shares of USA Rare Earth in a research report on Thursday, June 4th. Finally, Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Nine analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $36.83.

USA Rare Earth Trading Down 2.7%

The stock has a fifty day simple moving average of $22.53 and a 200-day simple moving average of $20.56. The company has a market capitalization of $3.40 billion, a PE ratio of -3.89 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The business had revenue of $5.70 million during the quarter. As a group, equities research analysts predict that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction that occurred 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 sale, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 9.10% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Larson Financial Group LLC raised its stake in USA Rare Earth by 217.5% during the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock worth $25,000 after acquiring an additional 1,433 shares in the last quarter. NewEdge Advisors LLC boosted its stake in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after acquiring an additional 1,424 shares in the last quarter. Ascentis Independent Advisors purchased a new position in shares of USA Rare Earth during the first quarter worth about $27,000. Center for Financial Planning Inc. purchased a new position in shares of USA Rare Earth during the fourth quarter worth about $28,000. Finally, Havemeyer Place LP acquired a new stake in shares of USA Rare Earth during the fourth quarter worth about $33,000.

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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