Rainbow Rare Earths (LON:RBW) Shares Down 6.1% – Time to Sell?

Rainbow Rare Earths Limited (LON:RBW) fell 6.1% during mid-day trading on Wednesday . The stock traded as low as GBX 22.50 and last traded at GBX 23. 1,779,977 shares traded hands during mid-day trading, an increase of 46% from the average session volume of 1,221,034 shares. The stock had previously closed at GBX 24.50.

Analysts Set New Price Targets

Several research firms recently issued reports on RBW. Berenberg Bank reissued a “buy” rating and issued a GBX 34 target price on shares of Rainbow Rare Earths in a research report on Wednesday, March 11th. Stifel Nicolaus reissued a “buy” rating and issued a GBX 30 target price on shares of Rainbow Rare Earths in a research report on Wednesday, March 11th. Finally, Canaccord Genuity Group raised Rainbow Rare Earths to a “speculative buy” rating and upped their target price for the company from GBX 22 to GBX 39 in a research report on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of GBX 34.33.

Rainbow Rare Earths Price Performance

The firm has a 50-day simple moving average of GBX 25.39 and a two-hundred day simple moving average of GBX 21.61. The company has a market capitalization of £160.93 million, a price-to-earnings ratio of -21.10 and a beta of 0.46. The company has a current ratio of 1.22, a quick ratio of 3.79 and a debt-to-equity ratio of 9.83.

Rainbow Rare Earths Company Profile

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition and other advanced future-facing technologies.

It is doing this successfully via pioneering the first commercial recovery of rare earth elements from phosphogypsum that occurs as the by-product of phosphoric acid production. These projects eliminate the cost and risk of mining, meaning that they can be brought into production quicker and at a lower cost than traditional hard rock mining projects.

The Company is developing the Phalaborwa Project in South Africa and the earlier stage Uberaba Project in Brazil.