USA Rare Earth (NASDAQ:USAR) Shares Down 2% - Time to Sell?

Key Points

• USA Rare Earth shares fell 2% to $13.80, with trading volume below average. The stock remains well below its 50-day and 200-day moving averages of $16.82 and $19.53, respectively.
• Analyst sentiment remains broadly positive: 10 analysts rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $33.71.
• The company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, on $5.82 million in revenue. Analysts expect a full-year loss of $0.62 per share, although several institutional investors recently increased their holdings.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price was down 2% during trading on Thursday. The company traded as low as $13.47 and last traded at $13.80. Approximately 13,195,414 shares were traded during mid-day trading, a decline of 18% from the average session volume of 16,106,174 shares. The stock had previously closed at $14.08.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Jefferies Financial Group began coverage on USA Rare Earth in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 target price for the company. Roth Capital lowered their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Finally, Needham & Company LLC decreased their price target 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. Ten investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $33.71.

USA Rare Earth Trading Down 2.0%

The stock has a market capitalization of $3.38 billion, a P/E ratio of -5.68 and a beta of 2.58. The company has a fifty day simple moving average of $16.82 and a two-hundred day simple moving average of $19.53.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($0.15) earnings per share (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. As a group, analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of USAR. Carlson Financial Inc. raised its holdings in USA Rare Earth by 5.7% in the second quarter. Carlson Financial Inc. now owns 11,780 shares of the company's stock worth $254,000 after purchasing an additional 635 shares during the period. Sterling Capital Management LLC increased its position in shares of USA Rare Earth by 29.1% in the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after buying an additional 829 shares in the last quarter. First PREMIER Bank increased its position in shares of USA Rare Earth by 100.0% in the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company's stock valued at $43,000 after buying an additional 1,000 shares in the last quarter. State of Wyoming raised its stake in USA Rare Earth by 100.4% during the 1st quarter. State of Wyoming now owns 2,509 shares of the company's stock worth $38,000 after buying an additional 1,257 shares during the period. Finally, 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 acquiring an additional 1,459 shares in the last quarter.

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.

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