USA Rare Earth (NASDAQ:USAR) Shares Down 6.8% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price traded down 6.8% during trading on Wednesday . The company traded as low as $21.11 and last traded at $21.3310. 13,019,026 shares traded hands during mid-day trading, a decline of 29% from the average daily volume of 18,353,986 shares. The stock had previously closed at $22.89.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on USAR. Northland Securities started coverage on USA Rare Earth in a report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 price objective for the company. Benchmark restated a “buy” rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Wall Street Zen raised USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Canaccord Genuity Group increased their price target on USA Rare Earth from $29.00 to $32.00 and gave the stock a “buy” rating in a research note on Tuesday, April 21st. Finally, Wedbush lifted their price objective on USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a report on Tuesday, May 12th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $36.83.

USA Rare Earth Price Performance

The stock has a market capitalization of $4.46 billion, a P/E ratio of -5.10 and a beta of 2.33. The stock has a fifty day moving average price of $24.08 and a 200 day moving average price of $20.16.

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

Insider Buying and Selling at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the 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 directly 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 SEC, which can be accessed through the SEC website. 9.10% of the stock is currently owned by corporate insiders.

Institutional Trading of USA Rare Earth

Hedge funds and other institutional investors have recently bought and sold shares of the company. Alyeska Investment Group L.P. lifted its stake in USA Rare Earth by 44.0% in the 3rd 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. Bayshore Capital Advisors LLC purchased a new position in shares of USA Rare Earth during the 4th quarter valued at $102,378,000. Vanguard Group Inc. increased its holdings in shares of USA Rare Earth by 533.3% in 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 during the period. State Street Corp raised its position in shares of USA Rare Earth by 78.4% in the fourth quarter. State Street Corp now owns 5,032,866 shares of the company’s stock worth $59,891,000 after buying an additional 2,212,177 shares in the last quarter. Finally, Inflection Point Holdings II LLC purchased a new stake in shares of USA Rare Earth in the fourth quarter worth $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.