USA Rare Earth (NASDAQ:USAR) Shares Down 13.1% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price was down 13.1% during mid-day trading on Monday . The company traded as low as $16.50 and last traded at $16.91. Approximately 16,925,880 shares traded hands during trading, an increase of 223% from the average daily volume of 5,232,936 shares. The stock had previously closed at $19.45.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Roth Capital set a $40.00 price target on shares of USA Rare Earth in a report on Friday, October 10th. Canaccord Genuity Group lifted their target price on shares of USA Rare Earth from $21.00 to $22.00 and gave the company a “buy” rating in a research report on Tuesday, September 30th. Wall Street Zen downgraded shares of USA Rare Earth from a “hold” rating to a “sell” rating in a research report on Saturday, August 16th. Cantor Fitzgerald began coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They issued an “overweight” rating and a $16.00 price target on the stock. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a research note on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $26.00.

USA Rare Earth Price Performance

The stock’s fifty day moving average price is $20.52 and its 200-day moving average price is $15.02. The firm has a market cap of $1.92 billion, a PE ratio of -62.63 and a beta of 0.75.

USA Rare Earth (NASDAQ:USAR) last posted its quarterly earnings results on Monday, August 11th. The company reported ($0.08) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.05.

Insiders Place Their Bets

In other news, Director Michael Blitzer sold 2,091,849 shares of the business’s stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $15.75, for a total transaction of $32,946,621.75. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 46.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently made changes to their positions in USAR. 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 worth $25,000 after buying an additional 1,424 shares in the last quarter. SBI Securities Co. Ltd. increased its stake in shares of USA Rare Earth by 10,448.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock worth $29,000 after acquiring an additional 2,612 shares during the last quarter. Osaic Holdings Inc. purchased a new position in shares of USA Rare Earth during the 2nd quarter worth $38,000. KLP Kapitalforvaltning AS purchased a new position in shares of USA Rare Earth during the 3rd quarter worth $69,000. Finally, Titleist Asset Management LLC acquired a new position in shares of USA Rare Earth during the 1st quarter valued at about $145,000.

About USA Rare Earth

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.