USA Rare Earth (NASDAQ:USAR) Shares Down 8.1% - Here's What Happened

Key Points

• USA Rare Earth shares fell 8.1% on Thursday, trading as low as $15.70 after closing at $17.31, with volume below its recent average.
• Despite the drop, Wall Street sentiment remains mostly positive: nine analysts rate the stock a Buy, one a Sell, and the average price target is $36.83.
• The company recently beat quarterly EPS estimates, but reported a loss of $0.12 per share on $5.7 million in revenue; a director also sold 13,000 shares in June.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price dropped 8.1% during trading on Thursday . The company traded as low as $15.70 and last traded at $15.91. Approximately 12,164,916 shares were traded during mid-day trading, a decline of 30% from the average session volume of 17,497,672 shares. The stock had previously closed at $17.31.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Benchmark reiterated a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Northland Securities started coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They issued an "outperform" rating and a $45.00 price objective on the stock. Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Roth Capital reiterated a "buy" rating on shares of USA Rare Earth in a research note on Thursday, June 4th. Finally, Needham & Company LLC assumed coverage on USA Rare Earth in a report on Monday, June 1st. They set a "buy" rating and a $39.00 price target on the stock. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $36.83.

USA Rare Earth Price Performance

The company has a 50 day moving average price of $22.97 and a 200 day moving average price of $20.52. The firm has a market cap of $3.55 billion, a PE ratio of -4.06 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last posted its quarterly earnings data on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. On average, equities analysts anticipate that USA Rare Earth Inc. will post -0.35 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the transaction, the director directly owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 9.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On USA Rare Earth

A number of institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC increased its position in USA Rare Earth by 158.2% during the 2nd 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. acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at approximately $223,000. Lighthouse Investment Partners LLC acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at approximately $329,000. Bank of America Corp DE boosted its stake in shares of USA Rare Earth by 465.7% in the second 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 in the last quarter. Finally, LMR Partners LLP purchased a new stake in shares of USA Rare Earth in the second quarter valued at approximately $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.

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.