USA Rare Earth (NASDAQ:USAR) Trading Down 6.5% – Here’s What Happened

Shares of USA Rare Earth Inc. (NASDAQ:USAR) were down 6.5% during mid-day trading on Friday . The stock traded as low as $14.14 and last traded at $14.15. Approximately 8,947,936 shares traded hands during trading, a decline of 48% from the average daily volume of 17,178,705 shares. The stock had previously closed at $15.14.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on USAR. Cantor Fitzgerald restated an “overweight” rating and issued a $40.00 price target on shares of USA Rare Earth in a research note on Thursday, June 4th. Canaccord Genuity Group raised their price target on USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. Weiss Ratings raised USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Needham & Company LLC dropped their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Wedbush increased 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. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $35.83.

USA Rare Earth Trading Down 6.5%

The company has a market capitalization of $3.16 billion, a PE ratio of -3.61 and a beta of 2.45. The business’s fifty day moving average is $21.53 and its two-hundred day moving average is $20.60.

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

Insider Activity

In related news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction 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 sale, the director directly owned 18,783 shares of the company’s stock, valued at $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 9.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC boosted its holdings in shares of USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after acquiring an additional 1,424 shares during the last quarter. Raymond James Financial Inc. bought a new stake in shares of USA Rare Earth in the second quarter worth approximately $223,000. Lighthouse Investment Partners LLC purchased a new position in shares of USA Rare Earth during the second quarter valued at approximately $329,000. Bank of America Corp DE lifted its position in USA Rare Earth by 465.7% during the second quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock valued at $2,659,000 after purchasing an additional 199,819 shares during the period. Finally, LMR Partners LLP bought a new position in USA Rare Earth during the second quarter valued at approximately $145,000.

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.