USA Rare Earth (NASDAQ:USAR) Reaches New 12-Month Low - Time to Sell?

Key Points

• USA Rare Earth shares fell to a new 52-week low of $11.40, down about 4%, while trading below both its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with 10 Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $33.71, despite several recent target reductions.
• The company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, on revenue of $5.82 million; analysts forecast a full-year loss of $0.62 per share.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) reached a new 52-week low during trading on Tuesday. The stock traded as low as $11.40 and last traded at $11.46, with a volume of 1,693,612 shares changing hands. The stock had previously closed at $11.82.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Roth Capital dropped their target price on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research report on Tuesday, July 21st. Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Jefferies Financial Group initiated coverage on USA Rare Earth in a report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price objective on the stock. Needham & Company LLC dropped their price objective on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $33.71.

USA Rare Earth Stock Down 4.0%

The firm has a 50-day moving average price of $16.59 and a two-hundred day moving average price of $19.25. The firm has a market cap of $2.78 billion, a PE ratio of -4.67 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) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Research analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in USA Rare Earth during the second quarter worth $335,795,000. Inflection Point Holdings II LLC acquired a new stake in shares of USA Rare Earth in the 4th quarter worth $37,188,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth in the 2nd quarter worth $32,762,000. Weiss Asset Management LP acquired a new stake in shares of USA Rare Earth in the 1st quarter worth $17,103,000. Finally, Korea Investment CORP purchased a new position in shares of USA Rare Earth during the 2nd quarter worth $18,108,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-based critical minerals company focused on developing a domestic, vertically integrated supply chain for rare earth elements and rare earth permanent magnets. The company's activities span the planned mining and processing of rare earth materials and the manufacture of neodymium-iron-boron (NdFeB) magnets, which are used in electric vehicles, renewable energy systems, electronics, aerospace and defense applications.

The company's principal resource project is the Round Top rare earth and critical minerals project in Hudspeth County, Texas.

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.