USA Rare Earth (NASDAQ:USAR) Stock Price Down 4.3% Following Analyst Downgrade

Key Points

• USA Rare Earth shares fell 4.3% after Needham & Company lowered its price target to $33 from $39, though it kept a buy rating on the stock.
• Trading volume was lighter than usual, with about 8.4 million shares changing hands versus an average of 17.2 million, and the stock traded as low as $14.87 intraday.
• Analyst sentiment remains mostly positive overall: nine analysts rate the stock a Buy, one rates it a Sell, and the consensus price target is about $35.83.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares dropped 4.3% on Thursday after Needham & Company LLC lowered their price target on the stock from $39.00 to $33.00. Needham & Company LLC currently has a buy rating on the stock. USA Rare Earth traded as low as $14.87 and last traded at $15.14. 8,385,992 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 17,243,881 shares. The stock had previously closed at $15.82.

Several other equities research analysts have also commented on USAR. Northland Securities assumed coverage on USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price target for the company. Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Wall Street Zen upgraded USA Rare Earth from a "strong sell" rating to a "sell" rating in a report on Saturday, May 16th. Benchmark reissued a "buy" rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Finally, Roth Capital cut their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating on the stock in a report on Tuesday. Nine research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $35.83.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the transaction, the director directly owned 18,783 shares of the company's stock, valued at $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 9.10% of the stock is owned by company insiders.

USA Rare Earth News Summary

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth announced definitive agreements to buy strategic minority stakes in French rare-earth processor Carester, formalizing a partnership that expands its midstream presence in Europe and strengthens its integrated “mine-to-magnet” supply chain. The deal could improve access to rare-earth oxides and feedstock while supporting the company’s long-term growth strategy. Article: USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester, Strengthening its European Rare Earth Partnership
• Neutral Sentiment: The company also disclosed that Carester’s Caremag facility is expected to begin operations in Q4 2026, which gives the partnership a clearer commercial timeline, but investors may still want proof that the project can ramp smoothly and on schedule. Article: USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester, Strengthening its European Rare Earth Partnership
• Neutral Sentiment: USA Rare Earth recently announced a leadership transition and named a new CEO, adding another moving part for the market to assess as the company pushes ahead with its industrial buildout. Article: USAR Stock Alert: What to Know as USA Rare Earth Announces Leadership Transition
• Negative Sentiment: Needham lowered its price target on USA Rare Earth while maintaining a buy rating, which can weigh on sentiment even though the new target still implies meaningful upside. Article: USA Rare Earth had its price target lowered by Needham & Company LLC

Hedge Funds Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently bought and sold shares of USAR. Bayshore Capital Advisors LLC purchased a new stake in shares of USA Rare Earth during the fourth quarter valued at approximately $102,378,000. Vanguard Group Inc. boosted its stake in shares of USA Rare Earth by 533.3% in the fourth quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company's stock valued at $71,834,000 after purchasing an additional 5,083,288 shares during the period. Alyeska Investment Group L.P. grew its holdings in 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 valued at $219,034,000 after purchasing an additional 3,909,455 shares in the last quarter. Inflection Point Holdings II LLC acquired a new stake in USA Rare Earth during the 4th quarter valued at $37,188,000. Finally, State Street Corp increased its stake in USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company's stock worth $59,891,000 after buying an additional 2,212,177 shares during the period.

USA Rare Earth Trading Down 4.3%

The stock has a market cap of $3.38 billion, a PE ratio of -3.86 and a beta of 2.45. The company's 50 day moving average is $21.92 and its 200-day moving average is $20.64.

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. As a group, analysts forecast that USA Rare Earth Inc. will post -0.35 EPS for the current year.

About USA Rare Earth

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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