USA Rare Earth (NASDAQ:USAR) Stock Price Down 4% - Here's Why

Key Points

• USA Rare Earth shares fell 4% to $18.51 in mid-day trading, with volume at 8.75 million shares—48% below the average daily volume.
• Analysts remain broadly bullish, with nine Buy ratings and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $35.83, despite several recent target-price cuts.
• The company reported a quarterly loss of $0.15 per share, missing estimates by $0.08, while an insider sold 13,000 shares. USA Rare Earth remains focused on developing its Round Top rare-earth and lithium project in Texas.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price was down 4% during mid-day trading on Tuesday . The stock traded as low as $18.22 and last traded at $18.51. 8,749,636 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 16,672,332 shares. The stock had previously closed at $19.29.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on USAR shares. Roth Capital cut their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a research report on Tuesday, July 21st. Canaccord Genuity Group raised their price target on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Needham & Company LLC cut their price target 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. Northland Securities began 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. Finally, Weiss Ratings downgraded USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a report on Tuesday, August 11th. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, USA Rare Earth has an average rating of "Moderate Buy" and an average target price of $35.83.

USA Rare Earth Stock Down 4.0%

The stock has a 50 day moving average of $18.80 and a 200 day moving average of $20.35. The company has a market capitalization of $4.13 billion, a price-to-earnings ratio of -7.62 and a beta of 2.55.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. As a group, sell-side analysts anticipate that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Insider Activity at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the company'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 sale, the director directly owned 18,783 shares of the company's stock, valued at approximately $427,688.91. This represents a 40.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 9.10% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in USA Rare Earth during the second quarter valued at $335,795,000. Alyeska Investment Group L.P. increased its stake in shares of USA Rare Earth by 44.0% in the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company's stock valued at $219,034,000 after acquiring an additional 3,909,455 shares in the last quarter. Bayshore Capital Advisors LLC bought a new stake in shares of USA Rare Earth in the 4th quarter valued at $102,378,000. Vanguard Group Inc. lifted its position in shares of USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock valued at $71,834,000 after acquiring an additional 5,083,288 shares during the period. Finally, State Street Corp lifted its position in shares of USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company's stock valued at $59,891,000 after acquiring an additional 2,212,177 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.

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