USA Rare Earth (NASDAQ:USAR) Stock Price Down 2.5% - Here's Why

Key Points

• USA Rare Earth shares fell 2.5% to about $18.92 in mid-day trading, with volume below the stock’s average. The company has a $4.22 billion market capitalization and trades below its 200-day moving average.
• Analysts remain broadly positive, with nine Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $35.83, despite Roth Capital and Needham recently lowering their targets.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07-per-share consensus estimate, while generating $5.82 million in revenue. A director also sold 13,000 shares, reducing her ownership by 40.9%.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares dropped 2.5% during mid-day trading on Wednesday . The company traded as low as $18.70 and last traded at $18.92. Approximately 14,434,150 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 16,590,152 shares. The stock had previously closed at $19.41.

Analyst Ratings Changes

A number of analysts recently commented on the company. Roth Capital decreased their price objective 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. Needham & Company LLC dropped their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a research report on Wednesday, July 22nd. Wall Street Zen upgraded USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Wedbush raised their price objective on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a report on Tuesday, May 12th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Nine research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $35.83.

USA Rare Earth Stock Performance

The company has a market cap of $4.22 billion, a P/E ratio of -7.79 and a beta of 2.55. The firm has a 50 day moving average price of $18.40 and a 200-day moving average price of $20.14.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. On average, sell-side analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Insider Transactions at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the sale, the director directly owned 18,783 shares in the company, valued at approximately $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 9.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently made changes to their positions in the stock. Carlson Financial Inc. lifted its position in shares of USA Rare Earth by 5.7% during the 2nd quarter. Carlson Financial Inc. now owns 11,780 shares of the company's stock valued at $254,000 after buying an additional 635 shares during the last quarter. Sterling Capital Management LLC increased its position in shares of USA Rare Earth by 29.1% in the first quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock worth $56,000 after purchasing an additional 829 shares during the last quarter. Pier 88 Investment Partners LLC lifted its holdings in shares of USA Rare Earth by 2.5% during the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock worth $413,000 after acquiring an additional 840 shares during the last quarter. SBI Securities Co. Ltd. boosted its holdings in shares of USA Rare Earth by 20.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock worth $66,000 after purchasing an additional 936 shares in the last quarter. Finally, First PREMIER Bank grew its position in USA Rare Earth by 100.0% during the second quarter. First PREMIER Bank now owns 2,000 shares of the company's stock valued at $43,000 after acquiring an additional 1,000 shares during the last quarter.

USA Rare Earth Company Profile

USA Rare Earth NASDAQ: USAR is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.

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