USA Rare Earth (NASDAQ:USAR) Shares Down 5.9% - What's Next?

Key Points

• USA Rare Earth shares fell 5.9% to $11.82, with roughly 12.8 million shares traded. The stock is trading below its 50-day and 200-day moving averages, at $16.67 and $19.28, respectively.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and one Sell rating and an average price target of $33.71. However, Needham and Roth Capital recently lowered their targets to $33 and $30, respectively.
• The company reported a quarterly loss of $0.15 per share, missing the consensus estimate of a $0.07 loss, on revenue of $5.82 million. USA Rare Earth is developing a domestic rare-earth mining, processing, and permanent-magnet supply chain centered on its Round Top project in Texas.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price dropped 5.9% on Monday. The company traded as low as $11.80 and last traded at $11.82. Approximately 12,797,492 shares were traded during mid-day trading, a decline of 20% from the average daily volume of 16,004,213 shares. The stock had previously closed at $12.56.

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Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. 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. Roth Capital cut 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. Jefferies Financial Group started 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. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $33.71.

USA Rare Earth Stock Down 5.9%

The firm has a fifty day simple moving average of $16.67 and a 200-day simple moving average of $19.28. The company has a market cap of $2.89 billion, a PE ratio of -4.86 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted 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 firm had revenue of $5.82 million during the quarter. Equities research analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Ascentis Independent Advisors purchased a new stake in shares of USA Rare Earth in the first quarter valued at about $27,000. KBC Group NV acquired a new stake in shares of USA Rare Earth during the first quarter worth about $35,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new stake in shares of USA Rare Earth during the first quarter worth about $38,000. State of Wyoming grew its holdings in shares of USA Rare Earth by 100.4% during the first 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 last quarter. Finally, Allworth Financial LP purchased a new position in shares of USA Rare Earth during the second quarter worth about $38,000.

About USA Rare Earth

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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