USA Rare Earth (NASDAQ:USAR) Trading Down 2.6% - Here's What Happened

Key Points

• USA Rare Earth shares fell 2.6% to $18.41 in midday trading, with volume down 34% from the average session. The stock has a $4.11 billion market capitalization and trades below both its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive: nine analysts rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $35.83, despite several recent target reductions.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07-loss consensus estimate, on revenue of $5.82 million. A director also sold 13,000 shares, reducing her position by 40.9%.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report)'s share price fell 2.6% on Wednesday . The stock traded as low as $17.95 and last traded at $18.41. 11,006,520 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 16,802,213 shares. The stock had previously closed at $18.91.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on USAR. Weiss Ratings raised USA Rare Earth from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Needham & Company LLC reduced their price objective on USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a research note on Wednesday, July 22nd. Canaccord Genuity Group raised their target price on shares of USA Rare Earth from $29.00 to $32.00 and gave the stock a "buy" rating in a research report on Tuesday, April 21st. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of USA Rare Earth in a report on Tuesday. Finally, Roth Capital reduced their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Nine investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock 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 $19.27 and a 200-day simple moving average of $20.52. The stock has a market cap of $4.11 billion, a PE ratio of -7.58 and a beta of 2.55.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last announced 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 company had revenue of $5.82 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 Transactions at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction that occurred 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 completion of the sale, the director directly owned 18,783 shares in the company, valued at approximately $427,688.91. This trade represents a 40.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 9.10% of the company's stock.

Institutional Investors Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the company. Allworth Financial LP acquired a new position in USA Rare Earth during the second quarter worth $38,000. Ascentis Independent Advisors acquired a new stake in USA Rare Earth in the first quarter valued at $27,000. Larson Financial Group LLC increased its position in shares of USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after buying an additional 1,433 shares in the last quarter. National Bank of Canada FI increased its position in shares of USA Rare Earth by 110.0% in the third quarter. National Bank of Canada FI now owns 2,100 shares of the company's stock valued at $36,000 after buying an additional 1,100 shares in the last quarter. Finally, KBC Group NV acquired a new position in shares of USA Rare Earth during the 1st quarter worth $35,000.

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.

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