USA Rare Earth (NASDAQ:USAR) Shares Down 8.1% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price dropped 8.1% on Tuesday . The company traded as low as $17.29 and last traded at $17.78. 14,115,094 shares were traded during trading, a decline of 21% from the average session volume of 17,955,221 shares. The stock had previously closed at $19.35.

Analysts Set New Price Targets

A number of equities analysts have issued reports on USAR shares. Cantor Fitzgerald reissued an “overweight” rating and issued a $40.00 target price on shares of USA Rare Earth in a report on Thursday, June 4th. Needham & Company LLC began coverage on USA Rare Earth in a report on Monday, June 1st. They issued a “buy” rating and a $39.00 price target on the stock. Wall Street Zen upgraded USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Wedbush boosted their price objective on 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, Northland Securities started coverage on USA Rare Earth in a research note on Thursday, April 23rd. They set an “outperform” rating and a $45.00 price objective for the company. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, USA Rare Earth has a consensus rating of “Moderate Buy” and a consensus price target of $36.83.

USA Rare Earth Stock Up 2.3%

The company has a market cap of $4.21 billion, a P/E ratio of -4.80 and a beta of 2.45. The company has a 50 day moving average price of $23.70 and a 200-day moving average price of $20.39.

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

Insider Buying and Selling at USA Rare Earth

In other 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 directly owned 18,783 shares in the company, valued at $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 SEC, which is accessible through this link. Corporate insiders own 9.10% of the company’s stock.

Institutional Investors Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alyeska Investment Group L.P. boosted its stake in USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock valued at $219,034,000 after purchasing an additional 3,909,455 shares in the last quarter. Bayshore Capital Advisors LLC acquired a new position in USA Rare Earth during the fourth quarter worth about $102,378,000. Vanguard Group Inc. raised its position in USA Rare Earth by 533.3% in the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock worth $71,834,000 after acquiring an additional 5,083,288 shares in the last quarter. State Street Corp lifted its holdings in USA Rare Earth by 78.4% in the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock valued at $59,891,000 after acquiring an additional 2,212,177 shares during the last quarter. Finally, Inflection Point Holdings II LLC acquired a new stake in USA Rare Earth in the 4th quarter valued at about $37,188,000.

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.