USA Rare Earth (NASDAQ:USAR) Trading Down 8.3% - Should You Sell?

Key Points

• Shares of USA Rare Earth Inc. (NASDAQ:USAR) fell by 8.3% to $14.40 amid increased trading volume, significantly higher than its average.
• Analysts have mixed views on USAR, with Cantor Fitzgerald giving it an "overweight" rating and a $16.00 price target, while Wall Street Zen downgraded it to a "sell."
• Insider activity showed significant selling, with Director Michael Blitzer offloading over 2 million shares for approximately $32.9 million.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) traded down 8.3% on Tuesday . The stock traded as low as $14.10 and last traded at $14.40. 3,732,617 shares changed hands during mid-day trading, an increase of 60% from the average session volume of 2,329,388 shares. The stock had previously closed at $15.70.

Analyst Ratings Changes

A number of brokerages have weighed in on USAR. Cantor Fitzgerald assumed coverage on shares of USA Rare Earth in a report on Friday, August 1st. They issued an "overweight" rating and a $16.00 price target for the company. Wall Street Zen lowered shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research report on Saturday. Canaccord Genuity Group started coverage on shares of USA Rare Earth in a research report on Friday, June 13th. They issued a "buy" rating and a $17.00 price target on the stock. Finally, Roth Capital reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Three analysts have rated the stock with a Buy rating, According to MarketBeat, USA Rare Earth presently has a consensus rating of "Buy" and a consensus price target of $16.00.

USA Rare Earth Price Performance

The stock has a 50-day moving average of $13.04.

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

Insider Activity at USA Rare Earth

In related news, Director Michael Blitzer sold 2,091,849 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total value of $32,946,621.75. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 46.60% of the company's stock.

Institutional Investors Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC boosted its position in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after purchasing an additional 1,424 shares during the last quarter. SBI Securities Co. Ltd. raised its stake in shares of USA Rare Earth by 10,448.0% during the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company's stock valued at $29,000 after purchasing an additional 2,612 shares during the period. Titleist Asset Management LLC raised its stake in shares of USA Rare Earth by 20.2% during the 2nd quarter. Titleist Asset Management LLC now owns 29,380 shares of the company's stock valued at $322,000 after purchasing an additional 4,930 shares during the period. LMR Partners LLP bought a new position in USA Rare Earth in the 2nd quarter worth about $145,000. Finally, Diametric Capital LP bought a new position in USA Rare Earth in the 2nd quarter worth about $147,000.

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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