USA Rare Earth (NASDAQ:USAR) Stock Price Down 5% - Time to Sell?

Key Points

• USA Rare Earth shares fell 5% to $18.29, near the stock’s 50-day moving average of $18.54 and below its 200-day average of $20.22.
• Analysts remain broadly optimistic, with nine Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $35.83, although several firms recently lowered their targets.
• The company missed quarterly earnings expectations, reporting a $0.15-per-share loss versus the projected $0.07 loss, while analysts expect a full-year loss of $0.62 per share. A director also sold 13,000 shares, reducing her ownership by 40.9%.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price was down 5% during trading on Monday . The company traded as low as $17.68 and last traded at $18.29. 14,910,419 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 16,629,719 shares. The stock had previously closed at $19.26.

Analysts Set New Price Targets

USAR has been the subject of several recent research reports. Cantor Fitzgerald reissued an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 16th. Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research report on Tuesday, August 11th. Roth Capital cut their price objective on USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Finally, Needham & Company LLC reduced their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, USA Rare Earth has an average rating of "Moderate Buy" and an average target price of $35.83.

USA Rare Earth Price Performance

The firm's 50-day moving average price is $18.54 and its 200-day moving average price is $20.22. The stock has a market cap of $4.08 billion, a P/E ratio of -7.53 and a beta of 2.55.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The business had revenue of $5.82 million for the quarter. Sell-side analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Insiders Place Their Bets

In related 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 transaction of $296,010.00. Following the sale, the director owned 18,783 shares of the company's stock, valued at $427,688.91. This represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 9.10% of the company's stock.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently made changes to their positions in the business. Allworth Financial LP bought a new position in shares of USA Rare Earth in the 2nd quarter valued at about $38,000. Ascentis Independent Advisors purchased a new stake in USA Rare Earth during the first quarter valued at approximately $27,000. Ameritas Advisory Services LLC lifted its stake in shares of USA Rare Earth by 276.3% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company's stock valued at $43,000 after purchasing an additional 1,459 shares during the last quarter. First PREMIER Bank lifted its stake in shares of USA Rare Earth by 100.0% in the 2nd quarter. First PREMIER Bank now owns 2,000 shares of the company's stock valued at $43,000 after purchasing an additional 1,000 shares during the last quarter. Finally, Larson Financial Group LLC boosted its holdings in shares of USA Rare Earth by 217.5% in the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock worth $25,000 after purchasing an additional 1,433 shares during the period.

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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