USA Rare Earth (NASDAQ:USAR) Trading Down 4.2% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) shares fell 4.2% during mid-day trading on Thursday . The stock traded as low as $18.54 and last traded at $19.15. 14,089,786 shares changed hands during trading, a decline of 22% from the average daily volume of 18,078,430 shares. The stock had previously closed at $19.98.

Wall Street Analyst Weigh In

A number of research analysts recently commented on USAR shares. Needham & Company LLC assumed coverage on USA Rare Earth in a research note on Monday, June 1st. They issued a “buy” rating and a $39.00 price target for the company. Northland Securities initiated coverage on shares of USA Rare Earth in a report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 price target for the company. Canaccord Genuity Group increased their price target on shares of USA Rare Earth from $29.00 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Wedbush boosted their price objective on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research report on Tuesday, May 12th. Finally, Benchmark restated a “buy” rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $36.83.

USA Rare Earth Price Performance

The stock has a 50-day simple moving average of $24.16 and a 200-day simple moving average of $20.25. The stock has a market cap of $4.27 billion, a P/E ratio of -4.89 and a beta of 2.33.

USA Rare Earth (NASDAQ:USAR) last issued its earnings results on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.16) by $0.04. The business had revenue of $5.70 million for the quarter. As a group, sell-side analysts forecast that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Transactions at USA Rare Earth

In related 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 completion of the transaction, the director owned 18,783 shares of the company’s stock, valued at $427,688.91. This represents a 40.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of USAR. Ascentis Independent Advisors acquired a new stake in shares of USA Rare Earth during the 1st quarter valued at $27,000. Larson Financial Group LLC increased its holdings in USA Rare Earth by 217.5% in the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock worth $25,000 after purchasing an additional 1,433 shares in the last quarter. National Bank of Canada FI increased its holdings in USA Rare Earth by 110.0% in the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock worth $36,000 after purchasing an additional 1,100 shares in the last quarter. KBC Group NV bought a new position in USA Rare Earth in the first quarter valued at about $35,000. Finally, NewEdge Advisors LLC boosted its stake in shares of 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 in the last quarter.

About USA Rare Earth

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.