USA Rare Earth (NASDAQ:USAR) Shares Down 2% - Here's Why

Key Points

• USA Rare Earth shares fell 2% to $15.40 in midday trading, with volume at 7.48 million shares—54% below the average daily volume.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $33.71. Recent targets include Jefferies at $21 and Roth Capital at $30, down from $40.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 consensus estimate, on $5.82 million in revenue. USA Rare Earth is developing the Round Top project in Texas to build a domestic supply chain for rare earth and critical minerals.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s stock price dropped 2% during mid-day trading on Tuesday . The stock traded as low as $15.29 and last traded at $15.40. 7,480,160 shares traded hands during trading, a decline of 54% from the average daily volume of 16,282,692 shares. The stock had previously closed at $15.71.

Analysts Set New Price Targets

A number of research firms have recently commented on USAR. Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Jefferies Financial Group assumed coverage on USA Rare Earth in a report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price objective for the company. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Finally, Roth Capital reduced their target price on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The company has a market cap of $3.77 billion, a P/E ratio of -6.34 and a beta of 2.58. The business's fifty day moving average is $17.23 and its two-hundred day moving average is $19.89.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its earnings results 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. Analysts expect that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP purchased a new position in USA Rare Earth during the second quarter valued at approximately $38,000. Ascentis Independent Advisors purchased a new stake in USA Rare Earth during the first quarter worth $27,000. Ameritas Advisory Services LLC lifted its holdings in USA Rare Earth by 276.3% during the second quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company's stock worth $43,000 after buying an additional 1,459 shares during the period. First PREMIER Bank boosted its position in USA Rare Earth by 100.0% during the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company's stock valued at $43,000 after acquiring an additional 1,000 shares in the last quarter. Finally, MCF Advisors LLC bought a new stake in USA Rare Earth during the 2nd quarter valued at $43,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-focused critical minerals company developing an integrated rare earth supply chain. Its activities center on the production of rare earth materials used in permanent magnets, electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's principal asset is the Round Top rare earth and critical minerals project in Hudspeth County, Texas. USA Rare Earth is advancing plans to mine and process ore from Round Top and produce separated rare earth oxides and other critical mineral products, including materials containing neodymium, praseodymium, dysprosium and terbium.

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