Rainbow Rare Earths (LON:RBW) Stock Price Down 7.6% – Should You Sell?

Rainbow Rare Earths Limited (LON:RBW) shares fell 7.6% during mid-day trading on Thursday . The company traded as low as GBX 21.10 and last traded at GBX 21.25. 2,930,719 shares traded hands during mid-day trading, an increase of 147% from the average daily volume of 1,188,254 shares. The stock had previously closed at GBX 23.

Wall Street Analyst Weigh In

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

Rainbow Rare Earths Stock Down 7.6%

The firm has a 50-day moving average price of GBX 25.37 and a 200 day moving average price of GBX 21.74. The company has a debt-to-equity ratio of 9.83, a current ratio of 1.22 and a quick ratio of 3.79. The company has a market cap of £148.68 million, a price-to-earnings ratio of -19.50 and a beta of 0.46.

About Rainbow Rare Earths

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.