USA Rare Earth (NASDAQ:USAR) Trading Down 5.4% - What's Next?

Key Points

• USA Rare Earth shares fell 5.4% to $17.11 on volume below the daily average, trading beneath both their 50-day ($18.71) and 200-day ($20.28) moving averages.
• Analyst sentiment remains broadly positive, with nine Buy ratings and one Sell rating producing a “Moderate Buy” consensus and an average price target of $35.83. However, Needham recently reduced its target from $39 to $33.
• The company reported a quarterly loss of $0.15 per share, missing the $0.07 consensus loss estimate, while revenue reached $5.82 million. USA Rare Earth is developing its Round Top rare-earth and lithium project in Texas and an associated separation facility.

USA Rare Earth Inc. (NASDAQ:USAR - Get Free Report) fell 5.4% during trading on Thursday . The stock traded as low as $16.95 and last traded at $17.11. Approximately 13,124,550 shares were traded during trading, a decline of 21% from the average daily volume of 16,608,637 shares. The stock had previously closed at $18.09.

Analyst Ratings Changes

A number of brokerages recently issued reports on USAR. Needham & Company LLC dropped their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Northland Securities initiated coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They set an "outperform" rating and a $45.00 target price on the stock. Wedbush boosted 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. Wall Street Zen raised shares of USA Rare Earth from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 16th. Finally, Weiss Ratings cut USA Rare Earth from a "sell (d)" rating to a "sell (d-)" rating in a research note on Tuesday, August 11th. Nine analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, USA Rare Earth currently has an average rating of "Moderate Buy" and a consensus target price of $35.83.

USA Rare Earth Price Performance

The company's 50 day simple moving average is $18.71 and its 200 day simple moving average is $20.28. The firm has a market cap of $3.82 billion, a price-to-earnings ratio of -7.04 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) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The firm had revenue of $5.82 million during the quarter. As a group, analysts forecast that USA Rare Earth Inc. will post -0.62 earnings per share for the current year.

Insider Activity

In other news, Director Carolyn Trabuco sold 13,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the transaction, the director directly owned 18,783 shares of the company's stock, valued at approximately $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 9.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Sterling Capital Management LLC increased its position in shares of USA Rare Earth by 29.1% in the 1st quarter. Sterling Capital Management LLC now owns 3,676 shares of the company's stock valued at $56,000 after purchasing an additional 829 shares during the last quarter. Pier 88 Investment Partners LLC grew its stake in shares of USA Rare Earth by 2.5% during the fourth quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company's stock worth $413,000 after purchasing an additional 840 shares in the last quarter. SBI Securities Co. Ltd. increased its holdings in USA Rare Earth by 20.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company's stock valued at $66,000 after buying an additional 936 shares during the last quarter. Advisory Services Network LLC raised its stake in USA Rare Earth by 2.0% in the third quarter. Advisory Services Network LLC now owns 52,366 shares of the company's stock valued at $900,000 after buying an additional 1,032 shares in the last quarter. Finally, National Bank of Canada FI raised its stake in 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.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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