USA Rare Earth (NASDAQ:USAR) Shares Down 6.8% – Should You Sell?

Shares of USA Rare Earth Inc. (NASDAQ:USAR) dropped 6.8% on Wednesday . The stock traded as low as $21.11 and last traded at $21.3310. 13,019,026 shares were traded during mid-day trading, a decline of 29% from the average daily volume of 18,353,986 shares. The stock had previously closed at $22.89.

Analyst Upgrades and Downgrades

USAR has been the subject of several research analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 price objective on shares of USA Rare Earth in a report on Thursday, June 4th. Needham & Company LLC assumed coverage on shares of USA Rare Earth in a research note on Monday, June 1st. They set a “buy” rating and a $39.00 target price on the stock. Canaccord Genuity Group raised their price target on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. Wedbush lifted their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Finally, Wall Street Zen raised shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Nine analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, USA Rare Earth has an average rating of “Moderate Buy” and an average price target of $36.83.

USA Rare Earth Stock Performance

The stock has a market cap of $4.76 billion, a PE ratio of -5.44 and a beta of 2.33. The company’s 50-day moving average price is $23.92 and its 200 day moving average price is $20.10.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.04. The business had revenue of $5.70 million during the quarter. On average, sell-side analysts anticipate that USA Rare Earth Inc. will post -0.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $22.77, for a total value of $296,010.00. Following the transaction, the director directly owned 18,783 shares in the company, 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 legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 9.10% of the company’s stock.

Institutional Investors Weigh In On USA Rare Earth

Hedge funds have recently modified their holdings of the business. Ascentis Independent Advisors purchased a new stake in shares of USA Rare Earth in the 1st quarter worth $27,000. Larson Financial Group LLC lifted its position in USA Rare Earth by 217.5% during the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock valued at $25,000 after purchasing an additional 1,433 shares in the last quarter. National Bank of Canada FI grew its holdings in USA Rare Earth by 110.0% during the third quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock valued at $36,000 after purchasing an additional 1,100 shares during the period. KBC Group NV bought a new stake in USA Rare Earth during the first quarter valued at about $35,000. Finally, NewEdge Advisors LLC grew its holdings in USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after purchasing an additional 1,424 shares during the period.

USA Rare Earth Company Profile

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.