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

USA Rare Earth Inc. (NASDAQ:USAR)’s share price was down 6.8% during trading on Wednesday . The stock traded as low as $21.11 and last traded at $21.3310. 13,019,026 shares traded hands during 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

USAR has been the topic of a number of research reports. Benchmark restated a “buy” rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 price target on shares of USA Rare Earth in a research note on Thursday, June 4th. Canaccord Genuity Group lifted their price target on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a research report on Tuesday, April 21st. Wedbush boosted their price objective on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 12th. Finally, Northland Securities initiated coverage on shares of USA Rare Earth in a report on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 price objective on the stock. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, USA Rare Earth currently has a consensus rating of “Moderate Buy” and a consensus target price of $36.83.

USA Rare Earth Price Performance

The stock has a 50 day simple moving average of $23.92 and a 200-day simple moving average of $20.10. The firm has a market cap of $4.76 billion, a PE ratio of -5.44 and a beta of 2.33.

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

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the sale, the director directly owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 9.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Sterling Capital Management LLC increased its position in shares of USA Rare Earth by 29.1% during the first quarter. Sterling Capital Management LLC now owns 3,676 shares of the company’s stock valued at $56,000 after acquiring an additional 829 shares in the last quarter. Pier 88 Investment Partners LLC raised its holdings in USA Rare Earth by 2.5% in the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company’s stock worth $413,000 after acquiring an additional 840 shares during the last quarter. SBI Securities Co. Ltd. lifted its position in USA Rare Earth by 20.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company’s stock valued at $66,000 after acquiring an additional 936 shares in the last quarter. Advisory Services Network LLC lifted its position in USA Rare Earth by 2.0% in the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company’s stock valued at $900,000 after acquiring an additional 1,032 shares in the last quarter. Finally, National Bank of Canada FI boosted its stake in USA Rare Earth by 110.0% during the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock valued at $36,000 after purchasing an additional 1,100 shares during the last quarter.

USA Rare Earth Company Profile

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.