USA Rare Earth (NASDAQ:USAR) Stock Falls 4.5% - Time to Sell?

Key Points

• USA Rare Earth shares fell 4.5% to $8.91 in midday trading, below both their 50-day moving average of $15.12 and 200-day moving average of $18.92. Trading volume was 11% below the daily average.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $33.71, despite one “Strong Sell” rating and recent target reductions.
• The company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, on $5.82 million in revenue. USA Rare Earth is developing a domestic rare-earth supply chain centered on its Round Top Mountain project in Texas.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) dropped 4.5% during mid-day trading on Monday. The stock traded as low as $8.89 and last traded at $8.91. 14,129,333 shares were traded during trading, a decline of 11% from the average daily volume of 15,868,953 shares. The stock had previously closed at $9.33.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Cantor Fitzgerald reissued an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Jefferies Financial Group began coverage on USA Rare Earth in a report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 target price on the stock. Roth Capital dropped their price target on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Texas Capital upgraded shares of USA Rare Earth to a "strong-buy" rating in a report on Tuesday, October 20th. Finally, Wall Street Zen lowered shares of USA Rare Earth from a "sell" rating to a "strong sell" rating in a research note on Saturday. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The stock has a market cap of $2.18 billion, a price-to-earnings ratio of -3.67 and a beta of 2.66. The company's 50 day simple moving average is $15.12 and its two-hundred day simple moving average is $18.92.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued 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. On average, equities research analysts predict that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Trading of USA Rare Earth

A number of institutional investors have recently bought and sold shares of USAR. Overbrook Management Corp purchased a new stake in shares of USA Rare Earth during the 3rd quarter worth about $3,145,000. BlackRock Inc. acquired a new stake in shares of USA Rare Earth during the 2nd quarter valued at about $335,795,000. Weiss Asset Management LP bought a new stake in shares of USA Rare Earth in the 1st quarter valued at approximately $17,103,000. Encompass Capital Advisors LLC bought a new stake in shares of USA Rare Earth in the 1st quarter valued at approximately $7,038,000. Finally, Man Group plc bought a new stake in shares of USA Rare Earth in the 2nd quarter valued at approximately $2,562,000.

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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