USA Rare Earth (NASDAQ:USAR) Hits New 1-Year Low - Here's What Happened

Key Points

• USA Rare Earth shares fell to a new 52-week low of $8.86, down from the prior close of $9.62, with trading volume exceeding 7.2 million shares.
• Analyst sentiment remains mixed but leans positive: the stock has a consensus rating of “Moderate Buy” and a $33.71 target price, despite one strong-sell rating and Needham reducing its target to $33.
• The company reported a quarterly EPS loss of $0.15 versus the $0.07 expected, while institutional investors—including BlackRock and Bank of America—recently established significant positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $8.86 and last traded at $8.9310, with a volume of 7,238,632 shares. The stock had previously closed at $9.62.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Texas Capital raised shares of USA Rare Earth to a "strong-buy" rating in a research report on Tuesday, October 20th. Needham & Company LLC decreased their price target on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Wall Street Zen downgraded USA Rare Earth from a "sell" rating to a "strong sell" rating in a report on Saturday, October 24th. Finally, Jefferies Financial Group assumed coverage on USA Rare Earth in a research note on Wednesday, September 2nd. They set a "buy" rating and a $21.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, USA Rare Earth currently has an average rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The stock's 50-day moving average is $14.30 and its 200 day moving average is $18.81. The stock has a market capitalization of $2.17 billion, a PE ratio of -3.64 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Institutional Trading of USA Rare Earth

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in USA Rare Earth during the second quarter worth approximately $335,795,000. Bank of America Corp DE acquired a new position in shares of USA Rare Earth in the 2nd quarter valued at $32,762,000. Weiss Asset Management LP purchased a new stake in USA Rare Earth in the 1st quarter valued at $17,103,000. Korea Investment CORP purchased a new stake in USA Rare Earth in the 2nd quarter valued at $18,108,000. Finally, Bank of New York Mellon Corp acquired a new stake in USA Rare Earth during the 2nd quarter worth $13,510,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc NASDAQ: USAR is developing an integrated domestic supply chain for rare earth and other critical minerals. The company's activities include the exploration and planned extraction of mineral resources, processing and separation of rare earth elements, and the production of sintered neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's flagship asset is the Round Top Mountain project in Hudspeth County, Texas.

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