USA Rare Earth (NASDAQ:USAR) Shares Down 5.8% - Here's Why

Key Points

• USA Rare Earth shares fell 5.8% to $14.06, with roughly 13 million shares traded—24% below average volume. The stock remains well below its 50-day and 200-day moving averages of $21.40 and $20.61, respectively.
• Analyst sentiment remains broadly positive: nine analysts rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83. Recent targets range from $30 to $45.
• The development-stage rare-earth company reported a quarterly loss of $0.12 per share, beating the $0.16 consensus loss estimate, on $5.7 million in revenue. A director also sold 13,000 shares, while several institutional investors initiated or increased positions.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 5.8% during trading on Tuesday . The company traded as low as $13.46 and last traded at $14.06. 13,002,391 shares changed hands during trading, a decline of 24% from the average session volume of 17,090,145 shares. The stock had previously closed at $14.93.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on USAR. Benchmark reaffirmed a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Northland Securities began coverage on USA Rare Earth in a report on Thursday, April 23rd. They set an "outperform" rating and a $45.00 target price for the company. Canaccord Genuity Group lifted their price target on USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a report on Tuesday, April 21st. Roth Capital decreased 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. Finally, Wall Street Zen upgraded USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Nine equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $35.83.

USA Rare Earth Stock Down 5.8%

The business has a 50-day moving average price of $21.40 and a 200-day moving average price of $20.61. The firm has a market capitalization of $3.14 billion, a price-to-earnings ratio of -3.59 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, topping the consensus estimate of ($0.16) by $0.04. The business had revenue of $5.70 million for the quarter. On average, equities research analysts forecast that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

Insiders Place Their Bets

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction 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 transaction, the director owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 9.10% of the company's stock.

Institutional Trading of USA Rare Earth

Large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC lifted its holdings in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock worth $25,000 after purchasing an additional 1,424 shares during the period. Raymond James Financial Inc. purchased a new stake in USA Rare Earth in the second quarter valued at $223,000. Lighthouse Investment Partners LLC purchased a new position in shares of USA Rare Earth during the 2nd quarter valued at about $329,000. Bank of America Corp DE lifted its holdings in shares of USA Rare Earth by 465.7% in the 2nd quarter. Bank of America Corp DE now owns 242,726 shares of the company's stock valued at $2,659,000 after buying an additional 199,819 shares during the period. Finally, LMR Partners LLP acquired a new stake in USA Rare Earth during the second quarter worth about $145,000.

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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