USA Rare Earth (NASDAQ:USAR) Stock Falls 5.9% - Here's What Happened

Key Points

• USA Rare Earth shares fell 5.9% to $9.63, with trading volume below its average. The stock has declined below its 50-day and 200-day moving averages.
• Analysts remain broadly optimistic despite recent target-price cuts: nine analysts rate USAR a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and a $33.71 average target.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 loss expected by analysts, while revenue totaled $5.82 million. USA Rare Earth is developing a domestic rare-earth supply chain centered on its Round Top Mountain project in Texas.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price traded down 5.9% on Thursday. The company traded as low as $9.41 and last traded at $9.63. Approximately 12,548,502 shares were traded during trading, a decline of 21% from the average daily volume of 15,918,019 shares. The stock had previously closed at $10.23.

Analyst Upgrades and Downgrades

USAR has been the topic of a number of recent research reports. Roth Capital dropped their target price on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. 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. Jefferies Financial Group began coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price objective on the stock. Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Finally, Weiss Ratings cut shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Nine analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, USA Rare Earth currently has a consensus rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The firm has a fifty day moving average price of $15.51 and a 200 day moving average price of $19.01. The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of -3.96 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. 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

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in USA Rare Earth during the second quarter worth about $335,795,000. Bank of America Corp DE acquired a new stake in shares of USA Rare Earth in the 2nd quarter worth approximately $32,762,000. Korea Investment CORP purchased a new position in USA Rare Earth in the 2nd quarter valued at approximately $18,108,000. Weiss Asset Management LP purchased a new position in USA Rare Earth in the 1st quarter valued at approximately $17,103,000. Finally, Bank of New York Mellon Corp purchased a new position in USA Rare Earth in the 2nd quarter valued at approximately $13,510,000.

USA Rare Earth Company Profile

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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