USA Rare Earth (NASDAQ:USAR) Trading Down 6.9% – Should You Sell?

Shares of USA Rare Earth Inc. (NASDAQ:USAR) dropped 6.9% on Monday . The stock traded as low as $16.98 and last traded at $17.21. 9,133,193 shares traded hands during trading, a decline of 48% from the average session volume of 17,660,209 shares. The stock had previously closed at $18.48.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Canaccord Genuity Group raised 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 report on Tuesday, April 21st. Northland Securities assumed coverage on USA Rare Earth in a report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 target price for the company. Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a report on Thursday, May 14th. Wedbush lifted their price objective on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Finally, Wall Street Zen upgraded USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $36.83.

USA Rare Earth Trading Up 5.7%

The stock has a market capitalization of $4.06 billion, a price-to-earnings ratio of -4.64 and a beta of 2.45. The company has a fifty day moving average of $23.19 and a two-hundred day moving average of $20.50.

USA Rare Earth (NASDAQ:USAR) last released 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 during the quarter. As a group, sell-side analysts predict that USA Rare Earth Inc. will post -0.35 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Carolyn Trabuco sold 13,000 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were 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 of the company’s stock, valued at approximately $427,688.91. This represents a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 9.10% of the stock is currently owned by company insiders.

Institutional Trading of USA Rare Earth

A number of hedge funds have recently modified their holdings of the company. Alyeska Investment Group L.P. raised its stake in shares of USA Rare Earth by 44.0% in the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock valued at $219,034,000 after purchasing an additional 3,909,455 shares in the last quarter. Bayshore Capital Advisors LLC acquired a new position in shares of USA Rare Earth in the 4th quarter valued at $102,378,000. Vanguard Group Inc. lifted its holdings in shares of USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock worth $71,834,000 after acquiring an additional 5,083,288 shares during the period. State Street Corp boosted its position in shares of USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock valued at $59,891,000 after acquiring an additional 2,212,177 shares in the last quarter. Finally, Inflection Point Holdings II LLC acquired a new position in USA Rare Earth in the fourth quarter worth about $37,188,000.

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.