USA Rare Earth (NASDAQ:USAR) Trading Down 4.8% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) traded down 4.8% on Wednesday . The company traded as low as $16.89 and last traded at $17.31. Approximately 8,013,990 shares traded hands during mid-day trading, a decline of 54% from the average session volume of 17,537,518 shares. The stock had previously closed at $18.19.

Analysts Set New Price Targets

A number of brokerages have commented on USAR. Wall Street Zen upgraded USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Benchmark restated a “buy” rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price target on shares of USA Rare Earth in a research note on Thursday, June 4th. Northland Securities initiated coverage on USA Rare Earth in a report on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 price target on the stock. Finally, Roth Capital reiterated a “buy” rating on shares of USA Rare Earth in a research report on Thursday, June 4th. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $36.83.

USA Rare Earth Trading Down 8.1%

The firm has a market cap of $3.55 billion, a P/E ratio of -4.06 and a beta of 2.45. The firm’s 50 day moving average is $22.76 and its two-hundred day moving average is $20.54.

USA Rare Earth (NASDAQ:USAR) last issued its earnings results on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, beating the consensus estimate of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. Analysts predict that USA Rare Earth Inc. will post -0.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Carolyn Trabuco sold 13,000 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director 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 this link. Insiders own 9.10% of the company’s stock.

Institutional Inflows and Outflows

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