USA Rare Earth (NASDAQ:USAR) Shares Down 8.3% - What's Next?

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.

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

Wall Street Analyst Weigh In

USAR has been the subject of several recent analyst reports. Cantor Fitzgerald began coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They issued an "overweight" rating and a $16.00 target price for the company. 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 objective for the company. Wall Street Zen lowered shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, Roth Capital reissued a "buy" rating on shares of USA Rare Earth in a research report on Friday, June 13th. Three equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $16.00.

USA Rare Earth Stock Performance

The business has a 50-day moving average price of $13.19.

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

Insiders Place Their Bets

In other USA Rare Earth news, Director Michael Blitzer sold 2,091,849 shares of the firm's stock in a transaction on 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 filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 46.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Newtyn Management LLC purchased a new stake in USA Rare Earth in the 1st quarter worth about $4,114,000. Geode Capital Management LLC boosted its position in USA Rare Earth by 2,437.5% during the second quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock worth $7,160,000 after purchasing an additional 627,545 shares during the period. Bank of America Corp DE increased its stake in shares of USA Rare Earth by 465.7% in the second quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock worth $2,659,000 after purchasing an additional 199,819 shares in the last quarter. Pier 88 Investment Partners LLC bought a new stake in shares of USA Rare Earth in the second quarter valued at approximately $588,000. Finally, Advisory Services Network LLC bought a new stake in shares of USA Rare Earth in the second quarter valued at approximately $562,000.

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.