USA Rare Earth (NASDAQ:USAR) Stock Falls 4.3% - Time to Sell?

Key Points

• USA Rare Earth shares fell 4.3% to $10.09, with trading volume below its average. The stock is well below its 50-day and 200-day moving averages of $16.03 and $19.11, respectively.
• Analysts remain broadly bullish despite recent target cuts: 10 analysts rate the stock a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and a $33.71 average price target.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07-loss consensus, on $5.82 million in revenue. USA Rare Earth is developing a domestic rare-earth mining, processing and magnet-manufacturing supply chain centered on its Round Top project in Texas.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares fell 4.3% on Monday. The company traded as low as $10.06 and last traded at $10.09. 10,304,585 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 16,004,741 shares. The stock had previously closed at $10.54.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Roth Capital decreased 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. 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. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Jefferies Financial Group started coverage on USA Rare Earth in a research note on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price target for the company. Finally, Weiss Ratings lowered USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Ten equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $33.71.

USA Rare Earth Stock Performance

The firm has a market capitalization of $2.47 billion, a price-to-earnings ratio of -4.15 and a beta of 2.66. The company has a 50 day moving average price of $16.03 and a two-hundred day moving average price of $19.11.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced 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 firm had revenue of $5.82 million during the quarter. On average, equities analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

A number of large investors have recently added to or reduced their stakes in USAR. IFP Advisors Inc raised its stake in USA Rare Earth by 26.0% in the 3rd quarter. IFP Advisors Inc now owns 85,578 shares of the company's stock valued at $1,205,000 after purchasing an additional 17,682 shares during the last quarter. Gunderson Capital Management LLC purchased a new position in USA Rare Earth in the 3rd quarter valued at $147,000. GAMMA Investing LLC lifted its holdings in USA Rare Earth by 55.2% in the 3rd quarter. GAMMA Investing LLC now owns 5,738 shares of the company's stock valued at $81,000 after purchasing an additional 2,042 shares in the last quarter. Overbrook Management Corp purchased a new position in USA Rare Earth in the 3rd quarter valued at $3,145,000. Finally, Farther Finance Advisors LLC boosted its stake in USA Rare Earth by 41.7% during the 3rd quarter. Farther Finance Advisors LLC now owns 18,829 shares of the company's stock worth $265,000 after purchasing an additional 5,540 shares during the last quarter.

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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