Needham & Company LLC Issues Pessimistic Forecast for USA Rare Earth (NASDAQ:USAR) Stock Price

Key Points

• Needham & Company LLC cut its price target on USA Rare Earth from $39 to $33, while still keeping a buy rating on the stock. The new target still implies roughly 108.86% upside from the prior close.
• Other analysts were mixed: Roth Capital lowered its target to $30, Wedbush raised its target to $35, and Northland Securities started coverage with a $45 target. Overall, the stock has a Moderate Buy consensus and an average target price of $35.83.
• USA Rare Earth shares opened at $15.80, well below the analyst targets, and the company reported a quarterly EPS loss of $0.12 versus expectations for a larger loss of $0.16. A director also sold 13,000 shares in a recent insider transaction.

USA Rare Earth (NASDAQ:USAR - Get Free Report) had its price objective dropped by research analysts at Needham & Company LLC from $39.00 to $33.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's target price suggests a potential upside of 108.86% from the company's previous close.

Several other research analysts also recently weighed in on the stock. Roth Capital dropped their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday. Wedbush boosted their price objective on USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a research report on Tuesday, May 12th. Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Northland Securities initiated coverage on USA Rare Earth in a research report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 target price for the company. Finally, Canaccord Genuity Group lifted their target price on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. 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 an average target price of $35.83.

USA Rare Earth Price Performance

Shares of NASDAQ:USAR opened at $15.80 on Wednesday. USA Rare Earth has a 1-year low of $10.91 and a 1-year high of $43.98. The company has a market capitalization of $3.52 billion, a P/E ratio of -4.03 and a beta of 2.45. The firm's 50 day simple moving average is $22.12 and its two-hundred day simple moving average is $20.61.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. On average, sell-side analysts anticipate that USA Rare Earth will post -0.35 earnings per share for the current fiscal year.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $22.77, for a total value of $296,010.00. Following the sale, the director owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 9.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On USA Rare Earth

Several large investors have recently made changes to their positions in the company. Larson Financial Group LLC lifted its position in shares of USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock worth $25,000 after buying an additional 1,433 shares in the last quarter. NewEdge Advisors LLC increased its stake in USA Rare Earth by 158.2% in the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after acquiring an additional 1,424 shares during the last quarter. Ascentis Independent Advisors bought a new stake in USA Rare Earth in the 1st quarter worth approximately $27,000. Center for Financial Planning Inc. purchased a new stake in shares of USA Rare Earth during the 4th quarter worth approximately $28,000. Finally, Havemeyer Place LP purchased a new stake in shares of USA Rare Earth during the 4th quarter worth approximately $33,000.

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.

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