USA Rare Earth (NASDAQ:USAR) Trading Down 3.6% - Here's What Happened

Key Points

• USA Rare Earth shares fell 3.6% to $19.29 during mid-day trading, with 11.9 million shares traded—29% below average volume.
• Analyst sentiment remains generally positive, with nine Buy ratings and one Sell rating, a “Moderate Buy” consensus, and an average price target of $35.83.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 consensus estimate, while a director recently sold 13,000 shares valued at approximately $296,000.

Shares of USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 3.6% during mid-day trading on Monday . The company traded as low as $18.81 and last traded at $19.29. 11,924,208 shares changed hands during mid-day trading, a decline of 29% from the average session volume of 16,727,125 shares. The stock had previously closed at $20.00.

Wall Street Analyst Weigh In

Several research firms have weighed in on USAR. Wall Street Zen raised USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Northland Securities started coverage on USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 price objective on the stock. Roth Capital dropped their price objective on 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. Needham & Company LLC cut 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 research note on Wednesday, July 22nd. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Nine analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, USA Rare Earth has an average rating of "Moderate Buy" and a consensus target price of $35.83.

USA Rare Earth Trading Down 3.6%

The stock has a market capitalization of $4.30 billion, a PE ratio of -7.94 and a beta of 2.55. The company's 50 day simple moving average is $18.86 and its 200 day simple moving average is $20.40.

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

Insider Buying and Selling

In related news, Director Carolyn Trabuco sold 13,000 shares of the company's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the transaction, the director directly owned 18,783 shares in the company, valued at approximately $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 SEC, which can be accessed through the SEC website. Insiders own 9.10% of the company's stock.

Institutional Trading of USA Rare Earth

Hedge funds have recently added to or reduced their stakes in the business. Larson Financial Group LLC increased its stake in shares of USA Rare Earth by 217.5% during the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company's stock valued at $25,000 after acquiring an additional 1,433 shares during the last quarter. NewEdge Advisors LLC boosted 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 worth $25,000 after acquiring an additional 1,424 shares during the last quarter. Ascentis Independent Advisors acquired a new stake in shares of USA Rare Earth in the first quarter worth approximately $27,000. Center for Financial Planning Inc. purchased a new stake in USA Rare Earth in the fourth quarter valued at approximately $28,000. Finally, Havemeyer Place LP purchased a new stake in USA Rare Earth in the fourth quarter valued at approximately $33,000.

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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