USA Rare Earth (NASDAQ:USAR) Stock Price Down 14.7% - Should You Sell?

Key Points

• USA Rare Earth plunged 14.7% intraday to $12.20 on heavy trading (about 14.1 million shares, roughly +155% versus average volume).
• Analyst opinion is mixed: the consensus is a “Moderate Buy” with an average target of $26.33, but recent downgrades and a Weiss "sell" sit alongside several buy/outperform ratings and targets up to $40.
• The company reported Q EPS of ($0.25) versus ($0.06) expected and has a $1.62 billion market cap, while large investors—most notably Alyeska—have materially increased positions, signaling institutional interest despite the earnings miss and price volatility.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price fell 14.7% during mid-day trading on Thursday . The company traded as low as $12.19 and last traded at $12.20. 14,119,321 shares changed hands during trading, an increase of 155% from the average session volume of 5,544,375 shares. The stock had previously closed at $14.30.

Analyst Ratings Changes

USAR has been the subject of several recent analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of USA Rare Earth in a report on Wednesday. William Blair started coverage on shares of USA Rare Earth in a research report on Monday, October 20th. They set an "outperform" rating on the stock. Roth Capital set a $40.00 price target on shares of USA Rare Earth in a research note on Friday, October 10th. Cantor Fitzgerald started coverage on shares of USA Rare Earth in a research note on Friday, August 1st. They set an "overweight" rating and a $16.00 price objective on the stock. Finally, Wall Street Zen downgraded shares of USA Rare Earth from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Four investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $26.33.

USA Rare Earth Stock Performance

The firm has a fifty day simple moving average of $20.89 and a 200-day simple moving average of $15.37. The firm has a market cap of $1.62 billion, a price-to-earnings ratio of -23.46 and a beta of 0.77.

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

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds have recently bought and sold shares of USAR. Alyeska Investment Group L.P. grew its position in shares of USA Rare Earth by 44.0% in the third quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock valued at $219,034,000 after purchasing an additional 3,909,455 shares during the last quarter. Altfest L J & Co. Inc. bought a new stake in USA Rare Earth in the 3rd quarter valued at $13,554,000. Newtyn Management LLC acquired a new position in USA Rare Earth in the 1st quarter valued at $4,114,000. Geode Capital Management LLC grew its holdings in USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company's stock valued at $7,160,000 after buying an additional 627,545 shares in the last quarter. Finally, Millennium Management LLC bought a new position in USA Rare Earth during the 3rd quarter worth $7,966,000.

About USA Rare Earth

USA Rare Earth, Inc is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas.

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