USA Rare Earth (NASDAQ:USAR) Trading Down 5.6% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) was down 5.6% during mid-day trading on Tuesday . The company traded as low as $21.59 and last traded at $21.74. 13,032,363 shares traded hands during trading, a decline of 29% from the average session volume of 18,426,170 shares. The stock had previously closed at $23.02.

Analysts Set New Price Targets

Several brokerages have weighed in on USAR. Canaccord Genuity Group boosted 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. Needham & Company LLC assumed coverage on USA Rare Earth in a report on Monday, June 1st. They set a “buy” rating and a $39.00 price objective on the stock. Northland Securities began coverage on USA Rare Earth in a research report on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 price objective for the company. Wedbush upped their target price on USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $40.00 target price on shares of USA Rare Earth in a research report on Thursday, June 4th. Nine equities 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.com, USA Rare Earth has an average rating of “Moderate Buy” and a consensus target price of $36.83.

USA Rare Earth Price Performance

The firm’s 50-day moving average is $23.28 and its 200 day moving average is $19.80. The stock has a market cap of $5.50 billion, a price-to-earnings ratio of -6.29 and a beta of 2.33.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.04. The company had revenue of $5.70 million for the quarter. On average, sell-side analysts forecast that USA Rare Earth Inc. will post -0.35 EPS for the current year.

Insider Buying and Selling at USA Rare Earth

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 value of $296,010.00. Following the transaction, the director directly owned 18,783 shares of the company’s stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 9.10% of the company’s stock.

Institutional Investors Weigh In On USA Rare Earth

A number of institutional investors have recently added to or reduced their stakes in USAR. Larson Financial Group LLC grew its holdings in shares of USA Rare Earth by 217.5% during the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock worth $25,000 after purchasing an additional 1,433 shares during the period. NewEdge Advisors LLC lifted its position in USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after buying an additional 1,424 shares in the last quarter. Ascentis Independent Advisors acquired a new position in USA Rare Earth during the first quarter valued at approximately $27,000. Center for Financial Planning Inc. purchased a new stake in USA Rare Earth during the fourth quarter worth approximately $28,000. Finally, Havemeyer Place LP purchased a new stake in USA Rare Earth during the fourth quarter worth approximately $33,000.

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.