USA Rare Earth (NASDAQ:USAR) Stock Price Down 1.4% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price traded down 1.4% during trading on Tuesday . The company traded as low as $24.77 and last traded at $26.35. 48,805,916 shares traded hands during mid-day trading, an increase of 102% from the average session volume of 24,185,480 shares. The stock had previously closed at $26.72.

USA Rare Earth News Summary

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: Director Michael Blitzer bought 100,000 shares (~$2.14M at $21.44), increasing his stake to 847,500 shares — signals insider confidence in the company. SEC Filing: Insider Purchase
• Positive Sentiment: USA Rare Earth closed a $1.5 billion PIPE financing — provides substantial near-term capital to advance projects and operations. GlobeNewswire: PIPE Closing
• Positive Sentiment: Federal engagement continues — Commerce Dept. LOI and administration loan/funding support position USAR as a centerpiece of domestic rare-earth and chip-supply initiatives, underpinning longer-term demand and policy backing. ExecutiveGov: Commerce, USA Rare Earth Collaborate
• Neutral Sentiment: Coverage framing USAR as a “test case” for U.S.-backed mine-to-magnet supply chains raises visibility but leaves near-term commercial outcomes and timelines uncertain. Yahoo Finance: Test Case Article
• Neutral Sentiment: Recent headlines pointed to a larger ~$3.1B government-backed funding package that helped run the stock; that move may have already been priced in, setting up volatility on any policy or execution news. Yahoo Finance: Funding Deal Coverage
• Negative Sentiment: Sectors fears after a Barron’s report that the U.S. may rethink price-floor support for rare-earths sparked a selloff across peer stocks — that macro/policy uncertainty is the most immediate drag on USAR today. Barron’s: Price-Floor Fears

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on USAR shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. UBS Group reaffirmed a “buy” rating on shares of USA Rare Earth in a report on Monday, December 8th. Roth Mkm boosted their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the company a “buy” rating in a research note on Monday. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They set a “buy” rating on the stock. Finally, Canaccord Genuity Group raised their price target on shares of USA Rare Earth from $23.00 to $33.00 and gave the stock a “buy” rating in a research report on Tuesday. Six equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, USA Rare Earth presently has an average rating of “Moderate Buy” and a consensus price target of $28.00.

USA Rare Earth Price Performance

The business has a fifty day moving average price of $16.34 and a 200 day moving average price of $17.33. The company has a market capitalization of $2.93 billion, a price-to-earnings ratio of -42.44 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.19).

Insiders Place Their Bets

In related news, Director Michael Blitzer purchased 100,000 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The shares were purchased at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the purchase, the director owned 847,500 shares of the company’s stock, valued at $18,170,400. This trade represents a 13.38% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Carolyn Trabuco bought 1,300 shares of the company’s stock in a transaction dated Thursday, January 29th. The stock was purchased at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the transaction, the director owned 1,300 shares of the company’s stock, valued at $29,380. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 46.60% of the stock is owned by insiders.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in shares of 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 buying an additional 5,083,288 shares during the last quarter. Alyeska Investment Group L.P. raised its holdings in USA Rare Earth by 44.0% in the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock worth $219,034,000 after acquiring an additional 3,909,455 shares during the period. Altfest L J & Co. Inc. acquired a new position in USA Rare Earth during the 3rd quarter worth $13,554,000. Geode Capital Management LLC lifted its position in USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock worth $7,160,000 after acquiring an additional 627,545 shares during the last quarter. Finally, Tudor Investment Corp ET AL bought a new stake in USA Rare Earth during the third quarter valued at about $8,304,000.

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.