USA Rare Earth (NASDAQ:USAR) Stock Price Down 5% - Here's What Happened

Key Points

• USA Rare Earth shares fell 5.1% to about $14.42, with 13.55 million shares traded. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and one Sell rating, though several firms recently cut their price targets. The consensus rating is “Moderate Buy,” with an average target of $33.71.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 loss expected by analysts, on revenue of $5.82 million. Institutional investors including BlackRock and Bank of America recently established positions.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) dropped 5% during trading on Monday. The company traded as low as $14.37 and last traded at $14.42. 13,550,415 shares changed hands during trading, a decline of 16% from the average daily volume of 16,162,714 shares. The stock had previously closed at $15.18.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on USAR shares. Weiss Ratings lowered shares of USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Needham & Company LLC dropped their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Jefferies Financial Group began coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price target on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Finally, Roth Capital lowered their price objective on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $33.71.

USA Rare Earth Trading Down 5.1%

The firm has a market capitalization of $3.53 billion, a P/E ratio of -5.93 and a beta of 2.58. The business's 50 day simple moving average is $16.91 and its two-hundred day simple moving average is $19.66.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued 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. Analysts predict that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of USA Rare Earth in the 2nd quarter worth $335,795,000. Inflection Point Holdings II LLC purchased a new position in shares of USA Rare Earth during the 4th quarter worth $37,188,000. Bank of America Corp DE bought a new position in USA Rare Earth in the 2nd quarter worth $32,762,000. Korea Investment CORP purchased a new position in USA Rare Earth during the second quarter valued at $18,108,000. Finally, Weiss Asset Management LP purchased a new position in USA Rare Earth during the first quarter valued at $17,103,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-focused critical minerals company developing an integrated rare earth supply chain. Its activities center on the production of rare earth materials used in permanent magnets, electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company's principal asset is the Round Top rare earth and critical minerals project in Hudspeth County, Texas. USA Rare Earth is advancing plans to mine and process ore from Round Top and produce separated rare earth oxides and other critical mineral products, including materials containing neodymium, praseodymium, dysprosium and terbium.

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