USA Rare Earth (NASDAQ:USAR) Shares Gap Down – What’s Next?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $25.18, but opened at $22.71. USA Rare Earth shares last traded at $21.26, with a volume of 19,300,895 shares trading hands.

More USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: Director Michael Blitzer bought 100,000 shares (~$2.14M at $21.44), raising his stake to ~847,500 shares — a notable insider vote of confidence. SEC Filing: Insider Purchase
• Positive Sentiment: USA Rare Earth closed a $1.5 billion PIPE financing — supplies substantial near-term capital to fund development of Round Top and downstream processing, reducing immediate financing uncertainty. GlobeNewswire: PIPE Closing
• Positive Sentiment: Federal engagement continues — Commerce Dept. LOI and reported loan/funding support from the administration reinforce policy backing for a domestic rare-earth supply chain, which underpins long-term demand expectations. ExecutiveGov: Commerce, USA Rare Earth Collaborate
• Positive Sentiment: Smaller insider buy: Director Carolyn Trabuco purchased 1,300 shares at $22.60 — adds to the insider-buying narrative supporting sentiment. SEC Filing: Trabuco Purchase
• Neutral Sentiment: Coverage paints USA Rare Earth as a “test case” for U.S.-backed mine-to-magnet supply chains — increases visibility but leaves timing and commercialization risks unresolved. Yahoo Finance: Test Case Article
• Neutral Sentiment: MarketBeat and other outlets note strong YTD momentum and multiple buy ratings/raised price targets (consensus target roughly $28) — bullish analyst framing may already be partially priced in. MarketBeat: Analyst Coverage
• Negative Sentiment: A Barron’s report that the U.S. might reconsider rare-earth price-floor support sparked sector selling and heightened near-term policy risk — this macro/policy uncertainty is the clearest immediate downside pressure on USAR. Barron’s: Price-Floor Fears

Wall Street Analysts Forecast Growth

USAR has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research report on Monday, December 29th. UBS Group restated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Roth Mkm increased their price target on USA Rare Earth from $25.00 to $35.00 and gave the company a “buy” rating in a research note on Monday. William Blair initiated coverage on USA Rare Earth in a report on Monday, October 20th. They issued an “outperform” rating for the company. Finally, Cantor Fitzgerald boosted their price target on USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a research note on Friday. Six research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, USA Rare Earth presently has a consensus rating of “Moderate Buy” and an average target price of $34.33.

USA Rare Earth Price Performance

The stock has a fifty day moving average of $16.55 and a 200 day moving average of $17.40. The stock has a market cap of $2.97 billion, a price-to-earnings ratio of -43.12 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.19).

Insider Buying and Selling at USA Rare Earth

In related news, Director Michael Blitzer purchased 100,000 shares of the business’s stock in a transaction on Thursday, January 29th. The shares were bought at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the transaction, the director owned 847,500 shares of the company’s stock, valued at approximately $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Carolyn Trabuco acquired 1,300 shares of USA Rare Earth stock in a transaction on Thursday, January 29th. The shares were bought at an average price of $22.60 per share, with a total value of $29,380.00. Following the purchase, the director directly owned 1,300 shares in the company, valued at approximately $29,380. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 46.60% of the company’s stock.

Institutional Trading of USA Rare Earth

Hedge funds have recently modified their holdings of the stock. Jennison Associates LLC acquired a new stake in USA Rare Earth during the fourth quarter worth about $1,586,000. UBS Group AG grew its stake in shares of USA Rare Earth by 10.2% during the 4th quarter. UBS Group AG now owns 1,279,378 shares of the company’s stock worth $15,225,000 after purchasing an additional 118,812 shares during the period. Vanguard Group Inc. grew its stake in shares of USA Rare Earth by 533.3% during the 4th 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. Kercheville Advisors LLC increased its holdings in shares of USA Rare Earth by 272.0% during the 4th quarter. Kercheville Advisors LLC now owns 37,200 shares of the company’s stock valued at $443,000 after purchasing an additional 27,200 shares in the last quarter. Finally, Arizona State Retirement System acquired a new position in shares of USA Rare Earth in the 4th quarter valued at $151,000.

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.