Rainbow Rare Earths (LON:RBW) Shares Down 6.1% – Time to Sell?

Rainbow Rare Earths Limited (LON:RBW) shares traded down 6.1% on Wednesday . The stock traded as low as GBX 22.50 and last traded at GBX 23. 1,779,977 shares traded hands during trading, an increase of 46% from the average session volume of 1,221,034 shares. The stock had previously closed at GBX 24.50.

Analysts Set New Price Targets

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

Rainbow Rare Earths Stock Performance

The firm’s 50 day moving average price is GBX 25.39 and its 200-day moving average price is GBX 21.61. The company has a debt-to-equity ratio of 9.83, a quick ratio of 3.79 and a current ratio of 1.22. The firm has a market capitalization of £160.93 million, a PE ratio of -21.10 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.