USA Rare Earth (NASDAQ:USAR) Stock Falls 8.5% - Here's What Happened

Key Points

• USA Rare Earth shares fell 8.5% to $10.32 in heavy trading, with volume about 30% above the daily average.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and one Sell rating, though Roth Capital and Needham lowered their price targets; the consensus target is $33.71.
• The company recently reported a quarterly loss of $0.15 per share, missing the $0.07 loss estimate, on revenue of $5.82 million.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) dropped 8.5% during mid-day trading on Wednesday. The stock traded as low as $10.15 and last traded at $10.32. Approximately 20,813,321 shares traded hands during trading, an increase of 30% from the average daily volume of 16,018,357 shares. The stock had previously closed at $11.28.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on USAR. Roth Capital dropped 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 report on Tuesday, July 21st. Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Cantor Fitzgerald reiterated 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 objective on the stock. Finally, Needham & Company LLC decreased their target price on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Price Performance

The company has a market capitalization of $2.53 billion, a P/E ratio of -4.25 and a beta of 2.66. The stock's 50 day simple moving average is $16.47 and its two-hundred day simple moving average is $19.21.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The firm had revenue of $5.82 million for the quarter. As a group, equities research analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its stake in shares of 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 during the period. Overbrook Management Corp acquired a new position in shares of USA Rare Earth in the third quarter valued at approximately $3,145,000. Farther Finance Advisors LLC increased its holdings 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 in the last quarter. MCF Advisors LLC bought a new position in shares of USA Rare Earth during the second quarter worth about $43,000. Finally, RFG Advisory LLC raised its holdings in shares of USA Rare Earth by 459.1% in the second quarter. RFG Advisory LLC now owns 59,835 shares of the company's stock valued at $1,291,000 after purchasing an additional 49,133 shares during the last quarter.

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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