USA Rare Earth (NASDAQ:USAR) Shares Down 7.4% – Here’s What Happened

Shares of USA Rare Earth Inc. (NASDAQ:USAR) dropped 7.4% on Wednesday . The company traded as low as $19.95 and last traded at $19.98. 13,100,659 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 18,107,990 shares. The stock had previously closed at $21.58.

Wall Street Analyst Weigh In

Several analysts have commented on USAR shares. Canaccord Genuity Group lifted their price objective on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Roth Mkm reissued a “buy” rating on shares of USA Rare Earth in a report on Thursday, June 4th. Wedbush upped their target price on USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Needham & Company LLC initiated coverage on USA Rare Earth in a research report on Monday, June 1st. They set a “buy” rating and a $39.00 price target for the company. Finally, Weiss Ratings raised USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a report on Thursday, May 14th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $36.83.

USA Rare Earth Stock Down 7.4%

The firm has a market capitalization of $4.46 billion, a PE ratio of -5.10 and a beta of 2.33. The stock has a 50-day moving average price of $24.21 and a 200 day moving average price of $20.24.

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

Insider Activity

In other news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total value of $296,010.00. Following the sale, the director 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 9.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of USAR. Bayshore Capital Advisors LLC acquired a new position in shares of USA Rare Earth during the fourth quarter valued at approximately $102,378,000. Vanguard Group Inc. increased its position in shares of USA Rare Earth by 533.3% during the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock worth $71,834,000 after purchasing an additional 5,083,288 shares in the last quarter. Alyeska Investment Group L.P. increased its position in shares of USA Rare Earth by 44.0% during the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock worth $219,034,000 after purchasing an additional 3,909,455 shares in the last quarter. Inflection Point Holdings II LLC acquired a new position in USA Rare Earth in the 4th quarter valued at $37,188,000. Finally, 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 purchasing an additional 2,212,177 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.