USA Rare Earth (NASDAQ:USAR) Stock Falls 5% - What's Next?

Key Points

• USA Rare Earth shares fell 5% to $10.54 in Friday trading, with roughly 10.9 million shares changing hands. The stock remains below its 50-day and 200-day moving averages of $16.20 and $19.14, respectively.
• Analyst sentiment remains broadly positive: ten analysts rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $33.71. However, several firms recently reduced their targets.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 consensus estimate, 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)'s stock price was down 5% during trading on Friday. The company traded as low as $10.41 and last traded at $10.54. Approximately 10,924,352 shares traded hands during mid-day trading, a decline of 32% from the average session volume of 16,033,001 shares. The stock had previously closed at $11.09.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Cantor Fitzgerald reissued an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Roth Capital reduced their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a report on Tuesday, July 21st. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a report on Wednesday, September 2nd. They set a "buy" rating and a $21.00 price objective on the stock. Weiss Ratings lowered USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Finally, Needham & Company LLC lowered 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. Ten analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, USA Rare Earth currently has a consensus rating of "Moderate Buy" and an average price target of $33.71.

USA Rare Earth Price Performance

The business has a fifty day simple moving average of $16.20 and a 200 day simple moving average of $19.14. The firm has a market cap of $2.58 billion, a price-to-earnings ratio of -4.34 and a beta of 2.66.

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 the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. On average, research analysts anticipate that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Investors Weigh In On USA Rare Earth

A number of hedge funds have recently modified their holdings of USAR. BlackRock Inc. acquired a new stake in USA Rare Earth during the second quarter worth about $335,795,000. Inflection Point Holdings II LLC acquired a new position in USA Rare Earth in the fourth quarter valued at approximately $37,188,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth during the second quarter valued at about $32,762,000. Weiss Asset Management LP acquired a new stake in shares of USA Rare Earth during the first quarter valued at about $17,103,000. Finally, Korea Investment CORP purchased a new stake in shares of USA Rare Earth in the 2nd quarter valued at approximately $18,108,000.

USA Rare Earth Company Profile

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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