USA Rare Earth (NASDAQ:USAR) Stock Falls 3.1% - Should You Sell?

Key Points

• USA Rare Earth shares fell 3.1% to $9.33, with trading volume below its average. The stock is also trading well below its 50-day and 200-day moving averages of $15.33 and $18.96, respectively.
• Despite recent target cuts, analysts remain broadly optimistic, with a “Moderate Buy” consensus and an average price target of $33.71. Ratings include nine Buys, one Strong Buy and one Sell.
• 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 approximately $0.62 per share, highlighting ongoing profitability risks.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price fell 3.1% on Friday. The company traded as low as $9.26 and last traded at $9.33. 9,510,647 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 15,881,117 shares. The stock had previously closed at $9.63.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Weiss Ratings downgraded shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Roth Capital dropped their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. Jefferies Financial Group began coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 target price for the company. Cantor Fitzgerald reissued an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. 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 for the company in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, USA Rare Earth presently has an average rating of "Moderate Buy" and an average target price of $33.71.

USA Rare Earth Stock Performance

The company has a 50-day simple moving average of $15.33 and a 200 day simple moving average of $18.96. The company has a market capitalization of $2.28 billion, a P/E ratio of -3.84 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly 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. As a group, sell-side analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Carlson Financial Inc. lifted its stake in shares of USA Rare Earth by 5.7% in the second quarter. Carlson Financial Inc. now owns 11,780 shares of the company's stock valued at $254,000 after buying an additional 635 shares during the period. Sterling Capital Management LLC increased its stake in USA Rare Earth by 29.1% during the first quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after acquiring an additional 829 shares during the period. First PREMIER Bank raised its holdings in 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 acquiring an additional 1,000 shares in the last quarter. State of Wyoming raised its holdings in USA Rare Earth by 100.4% in the 1st quarter. State of Wyoming now owns 2,509 shares of the company's stock valued at $38,000 after acquiring an additional 1,257 shares in the last quarter. Finally, Ameritas Advisory Services LLC raised its holdings in USA Rare Earth by 276.3% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company's stock valued at $43,000 after acquiring an additional 1,459 shares in the last quarter.

About USA Rare Earth

USA Rare Earth, Inc NASDAQ: USAR is developing an integrated domestic supply chain for rare earth and other critical minerals. The company's activities include the exploration and planned extraction of mineral resources, processing and separation of rare earth elements, and the production of sintered neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's flagship asset is the Round Top Mountain project in Hudspeth County, Texas.

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