USA Rare Earth (NASDAQ:USAR) Trading Down 4.4% - Here's What Happened

Key Points

• USA Rare Earth shares were down 4.4% on Wednesday, last at $25.18 after trading as low as $23.99, with about 31.97 million shares changing hands—roughly 30% above average volume.
• Analysts are mostly positive—six Buy ratings versus one Sell—giving a consensus of "Moderate Buy" and an average target of $28, while Canaccord raised its price target to $33.
• The company (market cap ~$3.34B) is advancing the Round Top rare-earth and lithium project and recently reported a quarterly EPS miss (‑$0.25 vs. estimate ‑$0.06).

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) shares dropped 4.4% during trading on Wednesday . The company traded as low as $23.99 and last traded at $25.18. Approximately 31,970,711 shares traded hands during trading, an increase of 30% from the average daily volume of 24,580,723 shares. The stock had previously closed at $26.35.

Analyst Ratings Changes

USAR has been the topic of several research analyst reports. William Blair assumed coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They set an "outperform" rating on the stock. UBS Group reissued a "buy" rating on shares of USA Rare Earth in a report on Monday, December 8th. Benchmark began coverage on USA Rare Earth in a research note on Wednesday, January 21st. They set a "buy" rating for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of USA Rare Earth in a research note on Monday, December 29th. Finally, Canaccord Genuity Group boosted their price target on shares of USA Rare Earth from $23.00 to $33.00 and gave the stock a "buy" rating in a research report on Tuesday. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $28.00.

USA Rare Earth Stock Down 4.4%

The company has a market capitalization of $3.34 billion, a price-to-earnings ratio of -48.42 and a beta of 0.96. The business has a 50-day moving average price of $15.93 and a 200-day moving average price of $17.24.

USA Rare Earth (NASDAQ:USAR - Get Free Report) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.19).

Institutional Trading of USA Rare Earth

Large investors have recently added to or reduced their stakes in the company. Calamos Advisors LLC purchased a new stake in USA Rare Earth in the 3rd quarter worth approximately $3,283,000. Pier 88 Investment Partners LLC purchased a new stake in shares of USA Rare Earth during the second quarter worth $588,000. Farther Finance Advisors LLC boosted its position in USA Rare Earth by 1,461,225.0% during the third quarter. Farther Finance Advisors LLC now owns 58,453 shares of the company's stock valued at $1,005,000 after purchasing an additional 58,449 shares during the last quarter. Altfest L J & Co. Inc. purchased a new position in USA Rare Earth in the third quarter valued at about $13,554,000. Finally, Sovran Advisors LLC acquired a new position in USA Rare Earth in the 3rd quarter worth about $3,832,000.

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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