USA Rare Earth (NASDAQ:USAR) Shares Down 2.8% - Time to Sell?

Key Points

• USA Rare Earth shares fell 2.8% to about $15.38 in mid-day trading, with 13.8 million shares changing hands. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly positive: ten analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and a $33.71 average price target. However, Needham recently lowered its target to $33 from $39.
• The company reported a quarterly loss of $0.15 per share, missing expectations by $0.08, 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 materials used in magnets, electric vehicles, defense and other technologies.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were down 2.8% during mid-day trading on Thursday. The company traded as low as $15.06 and last traded at $15.38. 13,809,286 shares traded hands during mid-day trading, a decline of 15% from the average session volume of 16,217,229 shares. The stock had previously closed at $15.83.

Analyst Ratings Changes

A number of research analysts have recently weighed in on USAR shares. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Needham & Company LLC dropped their target price on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price target for the company. Finally, Weiss Ratings cut shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $33.71.

USA Rare Earth Trading Down 2.8%

The firm has a market cap of $3.76 billion, a price-to-earnings ratio of -6.33 and a beta of 2.58. The company has a fifty day moving average price of $16.93 and a 200-day moving average price of $19.70.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. As a group, research analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Trading of USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the company. Larson Financial Group LLC increased its holdings in USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after buying an additional 1,433 shares in the last quarter. Ascentis Independent Advisors acquired a new stake in shares of USA Rare Earth during the 1st quarter valued at about $27,000. Havemeyer Place LP purchased a new position in shares of USA Rare Earth in the 4th quarter valued at about $33,000. KBC Group NV acquired a new position in USA Rare Earth in the 1st quarter worth about $35,000. Finally, Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in USA Rare Earth in the 1st quarter worth about $38,000.

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.

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.