USA Rare Earth (NASDAQ:USAR) Stock Gets Price Target Reduction from Cantor Fitzgerald

Key Points

• Cantor Fitzgerald cut its USA Rare Earth price target from $40 to $30 but maintained an “overweight” rating; the new target implies 242% upside from the prior close.
• Analyst views are mixed: MarketBeat reports a “Moderate Buy” consensus and an average $32.29 price target, while some firms rate the stock Sell or Strong Sell.
• USA Rare Earth reported a Q3 loss of $0.44 per share, wider than the expected $0.19 loss, on $3 million in revenue. The company also cited commercial shipments and $1.2 billion in cash, while production constraints and a delay to the Round Top project remain concerns.

USA Rare Earth (NASDAQ:USAR - Get Free Report) had its price target reduced by equities research analysts at Cantor Fitzgerald from $40.00 to $30.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Cantor Fitzgerald's target price suggests a potential upside of 242.47% from the company's previous close.

A number of other research firms have also issued reports on USAR. Jefferies Financial Group started coverage on shares of USA Rare Earth in a report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 target price on the stock. Wall Street Zen downgraded USA Rare Earth from a "sell" rating to a "strong sell" rating in a report on Saturday, October 24th. Roth Capital decreased their price objective on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of USA Rare Earth in a research report on Wednesday, November 4th. Finally, Needham & Company LLC cut their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, USA Rare Earth presently has an average rating of "Moderate Buy" and a consensus price target of $32.29.

USA Rare Earth Stock Performance

NASDAQ:USAR opened at $8.76 on Tuesday. USA Rare Earth has a one year low of $6.84 and a one year high of $32.80. The stock has a market cap of $2.14 billion, a PE ratio of -3.60 and a beta of 2.79. The stock has a 50 day moving average price of $13.04 and a 200 day moving average price of $18.53.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Monday, November 9th. The company reported ($0.44) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.19) by ($0.25). The firm had revenue of $3.00 million for the quarter. As a group, analysts predict that USA Rare Earth will post -0.62 earnings per share for the current fiscal year.

Institutional Trading of USA Rare Earth

Institutional investors have recently bought and sold shares of the business. HighTower Advisors LLC lifted its stake in USA Rare Earth by 96.1% during the third quarter. HighTower Advisors LLC now owns 68,503 shares of the company's stock worth $965,000 after purchasing an additional 33,578 shares during the last quarter. Proactive Wealth Strategies LLC increased its stake in USA Rare Earth by 59.0% in the third quarter. Proactive Wealth Strategies LLC now owns 24,010 shares of the company's stock valued at $338,000 after purchasing an additional 8,910 shares during the last quarter. Texas Capital Bank Wealth Management Services Inc raised its holdings in USA Rare Earth by 40.8% during the third quarter. Texas Capital Bank Wealth Management Services Inc now owns 96,022 shares of the company's stock worth $1,352,000 after purchasing an additional 27,821 shares in the last quarter. 10Elms LLP acquired a new stake in USA Rare Earth during the third quarter worth approximately $92,000. Finally, Aberdeen Group plc lifted its position in shares of USA Rare Earth by 18.2% during the 3rd quarter. Aberdeen Group plc now owns 24,074 shares of the company's stock worth $339,000 after buying an additional 3,711 shares during the last quarter.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: USA Rare Earth began commercial-scale shipments of mixed rare earth carbonate from Serra Verde and recorded its first sales under a 15-year, fully committed offtake agreement. Production is targeted to ramp toward about 4,000 tons per year by Q2 2027. Commercial-scale shipments and sales
• Positive Sentiment: The company ended Q3 with $1.2 billion in cash, providing funding for its development plans. It also reported its first commercial magnet sales and delivered initial yttrium oxide samples to a prospective defense, medical and specialty-coatings customer for testing. Q3 earnings call highlights First yttrium oxide samples
• Negative Sentiment: Q3 results missed expectations: the company reported a loss of $0.44 per share versus an expected loss of $0.19, with revenue of $3 million. Higher costs and raw-material shortages constrained production, while cash burn increased. Q3 results and estimates Shipments and cash burn
• Negative Sentiment: The Round Top project report has been delayed to Q3 2027, extending uncertainty around the project’s timeline. Q3 earnings call highlights

USA Rare Earth Company Profile

USA Rare Earth, Inc is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing.

The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.

USA Rare Earth is also developing magnet manufacturing capabilities in Stillwater, Oklahoma, and owns Less Common Metals, a U.K.-based producer of rare-earth metals and alloys.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.