USA Rare Earth (NASDAQ:USAR) Shares Down 7% - Here's Why

Key Points

• Shares fell about 7% intraday to $13.51 on Friday, trading as low as $13.00 with volume of ~7.43M shares (up ~25% vs. the 5.94M average) after a prior close of $14.53.
• Analyst sentiment is mostly positive—six Buys vs. one Sell—giving a MarketBeat consensus of "Moderate Buy" and a consensus price target of $26.33, with recent upgrades from Canaccord, UBS and William Blair.
• USA Rare Earth is a development-stage REE and lithium company centered on the Round Top deposit; it has a $1.79B market cap, negative trailing P/E, missed last quarter's EPS (reported loss $0.25 vs. -$0.06 expected), and 50-/200-day moving averages near $16.90/$16.23.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) was down 7% during mid-day trading on Friday . The stock traded as low as $13.00 and last traded at $13.51. Approximately 7,429,001 shares were traded during trading, an increase of 25% from the average daily volume of 5,940,674 shares. The stock had previously closed at $14.53.

Analyst Upgrades and Downgrades

USAR has been the subject of several recent research reports. Canaccord Genuity Group boosted their price target on USA Rare Earth from $22.00 to $23.00 and gave the stock a "buy" rating in a research report on Friday, November 7th. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. William Blair assumed coverage on shares of USA Rare Earth in a report on Monday, October 20th. They issued an "outperform" rating on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a research note on Monday. Finally, Benchmark reissued a "buy" rating on shares of USA Rare Earth in a research report on Monday, December 8th. Six research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.33.

USA Rare Earth Price Performance

The firm has a market capitalization of $1.79 billion, a price-to-earnings ratio of -25.98 and a beta of 0.91. The business has a fifty day moving average price of $16.90 and a two-hundred day moving average price of $16.23.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its earnings results on Thursday, November 6th. The company reported ($0.25) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.19).

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds have recently added to or reduced their stakes in the business. Tudor Investment Corp ET AL purchased a new position in shares of USA Rare Earth during the 3rd quarter valued at about $8,304,000. IFP Advisors Inc purchased a new position in USA Rare Earth during the third quarter valued at approximately $214,000. Advisory Services Network LLC lifted its holdings in 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 acquiring an additional 1,032 shares during the period. XTX Topco Ltd purchased a new stake in USA Rare Earth in the 3rd quarter worth approximately $686,000. Finally, Alyeska Investment Group L.P. grew its stake in shares of USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock worth $219,034,000 after purchasing an additional 3,909,455 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.