Shares of USA Rare Earth Inc (NASDAQ:USAR) are trading lower Wednesday afternoon. With the stock up more than 140% over the past month, the sell-off appears to be due to profit-taking.
What To Know: The stock’s recent, explosive growth was fueled by a convergence of sector-wide catalysts. Escalating trade tensions with China, which recently tightened its grip on rare earth exports, sparked concerns about supply chain stability.
A new JPMorgan initiative to invest $1.5 trillion in critical minerals and national security helped ignite a speculative frenzy in domestic rare earth companies, including USA Rare Earth, MP Materials and Critical Metals Corp.
After reaching a 52-week high of $43.98 Monday morning, Wednesday’s pullback suggests that some investors are now capitalizing on the significant gains, even as the long-term outlook for domestic critical mineral production remains a key focus for the broader market.
Benzinga Edge Rankings: Despite Wednesday’s pullback, the stock signals a positive price trend across short, medium, and long-term ratings. Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
USAR Price Action: USA Rare Earth shares were down 13.65% at $32.45 at the time of publication on Wednesday. The stock is trading within its 52-week range of $5.56 to $43.98.
The current price is notably above the 50-day moving average of $18.21, representing an impressive 83.3% premium. This substantial gap suggests that the stock has been in a strong bullish trend.
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How To Buy USAR Stock
By now you’re likely curious about how to participate in the market for USA Rare Earth – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you’re looking to bet against a company, the process is more complex. You’ll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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