USA Rare Earth Inc. (USAR) saw its stock price plummet 6.33% during intraday trading on Friday. The sharp decline follows a significant rally in the previous session.
The drop appears to reflect investor profit-taking after the stock's sharp 8.72% surge in the prior session. That previous rally was driven by the company's announcement of an approximately $2.8 billion acquisition of Brazilian rare earth producer Serra Verde Group, a deal expected to close in the third quarter.
Broader sector weakness is also weighing on shares, with most peers in the Diversified Metals & Mining sector trading lower during the session.