USA Rare Earth (NASDAQ:USAR) Trading Down 5.1% – Should You Sell?

Shares of USA Rare Earth Inc. (NASDAQ:USAR) fell 5.1% on Tuesday . The company traded as low as $22.21 and last traded at $22.89. 11,442,252 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 18,384,354 shares. The stock had previously closed at $24.12.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on USAR shares. Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 price objective on shares of USA Rare Earth in a research report on Thursday, June 4th. Needham & Company LLC began coverage on shares of USA Rare Earth in a research report on Monday, June 1st. They set a “buy” rating and a $39.00 target price for the company. Canaccord Genuity Group lifted their target price on shares of USA Rare Earth from $29.00 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, April 21st. Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Finally, Roth Mkm reissued a “buy” rating on shares of USA Rare Earth in a research note on Thursday, June 4th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $36.83.

USA Rare Earth Stock Down 4.7%

The firm has a market cap of $4.55 billion, a price-to-earnings ratio of -5.21 and a beta of 2.33. The business has a 50 day moving average of $24.01 and a 200 day moving average of $20.13.

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 firm had revenue of $5.70 million during the quarter. Research analysts predict that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insider Activity

In related news, Director Carolyn Trabuco sold 13,000 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following 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 SEC, which is available at the SEC website. Insiders own 9.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Alyeska Investment Group L.P. boosted its holdings 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 during the last quarter. Bayshore Capital Advisors LLC acquired a new position in USA Rare Earth in the fourth quarter valued at $102,378,000. Vanguard Group Inc. lifted its position in 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 buying an additional 5,083,288 shares during the period. State Street Corp lifted its position in USA Rare Earth by 78.4% during 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 during the period. Finally, Inflection Point Holdings II LLC acquired a new stake in USA Rare Earth in the 4th 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.