USA Rare Earth (NASDAQ:USAR) Stock Price Down 7.8% - Time to Sell?

Key Points

• Shares of USA Rare Earth were down 7.8% intraday, trading as low as $25.80 and last at $26.38 on about 17.3 million shares (roughly 8% below average), after a prior close of $28.60.
• The company reported Q1 EPS of -$0.19, missing consensus of -$0.12 and producing just $1.64 million in revenue, while its market cap of $5.75 billion and negative P/E reflect ongoing losses.
• Analyst coverage is mixed but leans positive — eight Buy ratings vs. one Sell — with a consensus rating of Moderate Buy and an average price target of $34.20 (individual targets up to $45).

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) were down 7.8% during trading on Thursday . The stock traded as low as $25.80 and last traded at $26.38. Approximately 17,308,297 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 18,869,490 shares. The stock had previously closed at $28.60.

Analyst Ratings Changes

Several research firms recently issued reports on USAR. Weiss Ratings reiterated a "sell (d-)" rating on shares of USA Rare Earth in a report on Friday, March 27th. Northland Securities began coverage on USA Rare Earth in a report on Thursday, April 23rd. They issued an "outperform" rating and a $45.00 target price for the company. Benchmark initiated coverage on USA Rare Earth in a report on Wednesday, January 21st. They set a "buy" rating on the stock. Roth Mkm set a $30.00 target price on shares of USA Rare Earth in a research note on Monday, April 20th. Finally, Cantor Fitzgerald boosted their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an "overweight" rating in a research note on Friday, January 30th. Eight 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.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $34.20.

USA Rare Earth Stock Down 7.8%

The company has a fifty day moving average price of $19.21 and a two-hundred day moving average price of $18.38. The firm has a market capitalization of $5.75 billion, a price-to-earnings ratio of -8.79 and a beta of 2.38.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced its earnings results on Monday, March 30th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter. On average, equities analysts anticipate that USA Rare Earth Inc. will post -0.76 earnings per share for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its position in shares of USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company's stock valued at $25,000 after purchasing an additional 1,424 shares during the last quarter. Raymond James Financial Inc. purchased a new position in USA Rare Earth during the second quarter worth $223,000. Lighthouse Investment Partners LLC purchased a new position in USA Rare Earth during the second quarter worth $329,000. Bank of America Corp DE raised its holdings in shares of 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 worth $2,659,000 after acquiring an additional 199,819 shares during the last quarter. Finally, LMR Partners LLP purchased a new stake in shares of USA Rare Earth in the second 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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