USA Rare Earth (NASDAQ:USAR) Trading Down 6.8% - Here's Why

Key Points

• USA Rare Earth shares fell 6.8% to $15.83, with trading volume below its average. The stock is trading below both its 50-day and 200-day moving averages.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07-per-share consensus estimate, while revenue totaled $5.82 million.
• Despite the decline, analyst sentiment remains positive overall: 10 analysts rate the stock Buy and one rates it Sell, producing a consensus “Moderate Buy” rating and a $33.71 target price.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) dropped 6.8% during trading on Wednesday . The company traded as low as $15.80 and last traded at $15.83. 13,103,925 shares changed hands during trading, a decline of 19% from the average session volume of 16,229,658 shares. The stock had previously closed at $16.99.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Needham & Company LLC reduced 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. Cantor Fitzgerald reiterated an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a report on Wednesday, September 2nd. They issued a "buy" rating and a $21.00 price objective for the company. Finally, Benchmark reissued a "buy" rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $33.71.

USA Rare Earth Stock Performance

The company's 50 day moving average price is $16.96 and its 200-day moving average price is $19.72. The company has a market cap of $3.87 billion, a price-to-earnings ratio of -6.51 and a beta of 2.58.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. As a group, sell-side analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Hedge Funds Weigh In On USA Rare Earth

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

About USA Rare Earth

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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