USA Rare Earth (NASDAQ:USAR) Trading Down 2.5% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price fell 2.5% on Friday . The stock traded as low as $21.29 and last traded at $21.99. 14,272,310 shares were traded during trading, a decline of 23% from the average session volume of 18,530,422 shares. The stock had previously closed at $22.56.

Analyst Ratings Changes

Several brokerages recently weighed in on USAR. Needham & Company LLC began coverage on USA Rare Earth in a research note on Monday, June 1st. They set a “buy” rating and a $39.00 target price for the company. 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. Roth Mkm reissued a “buy” rating on shares of USA Rare Earth in a report on Thursday, June 4th. Northland Securities began coverage on USA Rare Earth in a research report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 target price for the company. Finally, Wedbush raised their target price on USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, USA Rare Earth presently has an average rating of “Moderate Buy” and an average price target of $36.83.

USA Rare Earth Stock Performance

The firm has a market cap of $4.90 billion, a P/E ratio of -5.61 and a beta of 2.33. The company has a 50-day moving average of $22.86 and a 200 day moving average of $19.53.

USA Rare Earth (NASDAQ:USAR) last posted 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 company had revenue of $5.70 million for the quarter. Sell-side analysts anticipate that USA Rare Earth Inc. will post -0.35 EPS for the current fiscal year.

Insider Activity at USA Rare Earth

In related news, Director Carolyn Trabuco sold 13,000 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the transaction, the director owned 18,783 shares in the company, valued at $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 9.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tudor Investment Corp ET AL acquired a new stake in USA Rare Earth during the 3rd quarter valued at $8,304,000. Jennison Associates LLC acquired a new stake in USA Rare Earth during the 4th quarter valued at $1,586,000. JPMorgan Chase & Co. acquired a new stake in USA Rare Earth during the 3rd quarter valued at $734,000. Sovran Advisors LLC increased its holdings in USA Rare Earth by 119.7% during the 4th quarter. Sovran Advisors LLC now owns 489,707 shares of the company’s stock valued at $5,828,000 after purchasing an additional 266,783 shares in the last quarter. Finally, Kercheville Advisors LLC increased its holdings in USA Rare Earth by 272.0% during the 4th quarter. Kercheville Advisors LLC now owns 37,200 shares of the company’s stock valued at $443,000 after purchasing an additional 27,200 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.