USA Rare Earth (NASDAQ:USAR) Stock Price Down 4.6% - Here's What Happened

Key Points

• USA Rare Earth shares fell 4.6% to $11.28, with about 13.7 million shares traded—15% below the stock’s average daily volume.
• 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, despite recent target reductions.
• The company missed quarterly earnings expectations, reporting a loss of $0.15 per share versus the $0.07 expected loss. Major institutions, including BlackRock, Bank of America, and Korea Investment, recently acquired stakes.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 4.6% during trading on Tuesday. The stock traded as low as $11.26 and last traded at $11.28. Approximately 13,662,715 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 15,993,438 shares. The stock had previously closed at $11.82.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Needham & Company LLC dropped their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a research note on Wednesday, September 2nd. They set a "buy" rating and a $21.00 target price for the company. 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. Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Ten research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $33.71.

USA Rare Earth Price Performance

The company has a market cap of $2.76 billion, a price-to-earnings ratio of -4.64 and a beta of 2.66. The business has a 50 day simple moving average of $16.59 and a 200 day simple moving average of $19.25.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its 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 during the quarter. As a group, sell-side analysts anticipate that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of USA Rare Earth in the 2nd quarter worth $335,795,000. Inflection Point Holdings II LLC acquired a new position in USA Rare Earth in the 4th quarter worth $37,188,000. Bank of America Corp DE acquired a new position in USA Rare Earth in the 2nd quarter worth $32,762,000. Korea Investment CORP bought a new position in USA Rare Earth during the 2nd quarter worth about $18,108,000. Finally, Weiss Asset Management LP bought a new position in USA Rare Earth during the 1st quarter worth about $17,103,000.

About USA Rare Earth

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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