USA Rare Earth (NASDAQ:USAR) Shares Down 1.5% on Disappointing Earnings

Key Points

• USA Rare Earth shares fell 1.5% after the company reported quarterly earnings of a $0.15-per-share loss, missing the $0.07 consensus loss estimate. Quarterly revenue totaled $5.82 million.
• Analysts remain broadly optimistic, with nine Buy ratings and one Sell rating, producing a “Moderate Buy” consensus and an average price target of $35.83, despite several firms recently lowering targets.
• Director Carolyn Trabuco sold 13,000 shares for approximately $296,000, while company insiders retain a 9.1% ownership stake. Institutional investors, including Sterling Capital and National Bank of Canada, recently increased their positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares fell 1.5% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $18.95 and last traded at $19.04. Approximately 15,214,524 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 16,844,225 shares. The stock had previously closed at $19.33.

The company reported ($0.15) earnings per share for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million for the quarter.

Analysts Set New Price Targets

Several research firms have weighed in on USAR. Needham & Company LLC cut their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Benchmark restated a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Wedbush raised their price objective on USA Rare Earth from $29.00 to $35.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 12th. Northland Securities began coverage on USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price objective on the stock. Finally, Roth Capital reduced their target price on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday, July 21st. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, USA Rare Earth presently has an average rating of "Moderate Buy" and an average price target of $35.83.

Insider Buying and Selling

In other USA Rare Earth 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 transaction, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 9.10% of the company's stock.

Institutional Investors Weigh In On USA Rare Earth

Several large investors have recently made changes to their positions in the stock. Sterling Capital Management LLC boosted its stake in USA Rare Earth by 29.1% in the 1st 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 period. Pier 88 Investment Partners LLC raised its stake in shares of USA Rare Earth by 2.5% in the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock valued at $413,000 after purchasing an additional 840 shares during the period. SBI Securities Co. Ltd. raised its stake 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 valued at $66,000 after purchasing an additional 936 shares during the period. Advisory Services Network LLC lifted its holdings in shares of USA Rare Earth by 2.0% in the third quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock valued at $900,000 after purchasing an additional 1,032 shares in the last quarter. Finally, National Bank of Canada FI lifted its holdings in shares of USA Rare Earth by 110.0% in the third quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock valued at $36,000 after purchasing an additional 1,100 shares in the last quarter.

USA Rare Earth Price Performance

The company has a market capitalization of $4.25 billion, a price-to-earnings ratio of -4.86 and a beta of 2.55. The firm has a 50-day moving average price of $19.71 and a two-hundred day moving average price of $20.53.

About USA Rare Earth

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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