USA Rare Earth (NASDAQ:USAR) Stock Price Down 7% - Here's What Happened

Key Points

• USA Rare Earth shares fell 7% intraday to $13.07, with 13.2 million shares traded—below the average volume of 17.1 million.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83. Roth Capital recently lowered its target to $30.
• The development-stage critical minerals company reported quarterly revenue of $5.7 million and an adjusted loss of $0.12 per share, beating the expected loss of $0.16; analysts anticipate a full-year loss of $0.35 per share.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price dropped 7% during mid-day trading on Wednesday . The company traded as low as $12.93 and last traded at $13.07. 13,244,118 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 17,071,629 shares. The stock had previously closed at $14.06.

Analyst Ratings Changes

USAR has been the topic of several research reports. Roth Capital reduced 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 research report on Tuesday, July 21st. Canaccord Genuity Group lifted their price target on USA Rare Earth from $29.00 to $32.00 and gave the stock a "buy" rating in a report on Tuesday, April 21st. Wedbush upped their target price on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an "outperform" rating in a report on Tuesday, May 12th. Benchmark restated a "buy" rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $40.00 target price on shares of USA Rare Earth in a report on Thursday, June 4th. Nine equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $35.83.

USA Rare Earth Price Performance

The company has a 50-day simple moving average of $21.28 and a 200-day simple moving average of $20.59. The stock has a market cap of $2.92 billion, a PE ratio of -3.33 and a beta of 2.45.

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

Insider Activity at USA Rare Earth

In related 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 value of $296,010.00. Following the sale, the director directly owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 9.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On USA Rare Earth

A number of institutional investors and hedge funds have recently bought and sold shares of USAR. NewEdge Advisors LLC boosted its stake in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after acquiring an additional 1,424 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of USA Rare Earth during the 2nd quarter worth $223,000. Lighthouse Investment Partners LLC acquired a new stake in USA Rare Earth during the second quarter worth about $329,000. Bank of America Corp DE raised its holdings in 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 during the period. Finally, LMR Partners LLP purchased a new position in shares of USA Rare Earth in the 2nd quarter valued at $145,000.

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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