USA Rare Earth (NASDAQ:USAR) Stock Price Down 12.4% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s share price traded down 12.4% during mid-day trading on Thursday . The company traded as low as $21.03 and last traded at $22.07. 40,803,156 shares were traded during mid-day trading, an increase of 58% from the average session volume of 25,768,285 shares. The stock had previously closed at $25.18.

Key Stories Impacting USA Rare Earth

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: Director Michael Blitzer bought 100,000 shares (~$2.14M at $21.44), raising his stake to ~847,500 shares — a notable insider vote of confidence. SEC Filing: Insider Purchase
• Positive Sentiment: USA Rare Earth closed a $1.5 billion PIPE financing — supplies substantial near-term capital to fund development of Round Top and downstream processing, reducing immediate financing uncertainty. GlobeNewswire: PIPE Closing
• Positive Sentiment: Federal engagement continues — Commerce Dept. LOI and reported loan/funding support from the administration reinforce policy backing for a domestic rare-earth supply chain, which underpins long-term demand expectations. ExecutiveGov: Commerce, USA Rare Earth Collaborate
• Positive Sentiment: Smaller insider buy: Director Carolyn Trabuco purchased 1,300 shares at $22.60 — adds to the insider-buying narrative supporting sentiment. SEC Filing: Trabuco Purchase
• Neutral Sentiment: Coverage paints USA Rare Earth as a “test case” for U.S.-backed mine-to-magnet supply chains — increases visibility but leaves timing and commercialization risks unresolved. Yahoo Finance: Test Case Article
• Neutral Sentiment: MarketBeat and other outlets note strong YTD momentum and multiple buy ratings/raised price targets (consensus target roughly $28) — bullish analyst framing may already be partially priced in. MarketBeat: Analyst Coverage
• Negative Sentiment: A Barron’s report that the U.S. might reconsider rare-earth price-floor support sparked sector selling and heightened near-term policy risk — this macro/policy uncertainty is the clearest immediate downside pressure on USAR. Barron’s: Price-Floor Fears

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on USAR shares. Roth Mkm boosted their price target on USA Rare Earth from $25.00 to $35.00 and gave the stock a “buy” rating in a research note on Monday. William Blair began coverage on USA Rare Earth in a research report on Monday, October 20th. They set an “outperform” rating on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research note on Monday, December 29th. Canaccord Genuity Group raised their target price on USA Rare Earth from $23.00 to $33.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, UBS Group reissued a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Six analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, USA Rare Earth currently has a consensus rating of “Moderate Buy” and a consensus target price of $34.33.

USA Rare Earth Price Performance

The company has a market capitalization of $2.97 billion, a PE ratio of -43.12 and a beta of 0.96. The business’s 50 day simple moving average is $16.55 and its 200 day simple moving average is $17.40.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.19).

Insider Activity at USA Rare Earth

In related news, Director Carolyn Trabuco acquired 1,300 shares of the firm’s stock in a transaction dated Thursday, January 29th. The shares were purchased at an average cost of $22.60 per share, for a total transaction of $29,380.00. Following the acquisition, the director owned 1,300 shares in the company, valued at $29,380. The trade was a ? increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Michael Blitzer purchased 100,000 shares of the firm’s stock in a transaction on Thursday, January 29th. The shares were purchased at an average price of $21.44 per share, for a total transaction of $2,144,000.00. Following the completion of the purchase, the director directly owned 847,500 shares of the company’s stock, valued at $18,170,400. This represents a 13.38% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 46.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. International Assets Investment Management LLC purchased a new position in shares of USA Rare Earth in the 2nd quarter valued at about $250,000. MMCAP International Inc. SPC acquired a new position in USA Rare Earth in the second quarter valued at $261,000. Pier 88 Investment Partners LLC acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at about $588,000. SBI Securities Co. Ltd. boosted its holdings in shares of USA Rare Earth by 10,448.0% in the second quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock valued at $29,000 after acquiring an additional 2,612 shares during the period. Finally, Geode Capital Management LLC boosted its stake in USA Rare Earth by 2,437.5% during the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock worth $7,160,000 after purchasing an additional 627,545 shares during the period.

USA Rare Earth Company Profile

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.