USA Rare Earth (NASDAQ:USAR) Stock Falls 5% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price dropped 5% during mid-day trading on Friday. The company traded as low as $10.41 and last traded at $10.54. Approximately 10,924,352 shares were traded during trading, a decline of 32% from the average daily volume of 16,033,001 shares. The stock had previously closed at $11.09.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Needham & Company LLC cut their price target on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Cantor Fitzgerald reissued an “overweight” rating on shares of USA Rare Earth in a research note on Tuesday, August 11th. Roth Capital reduced their price objective on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a research report on Tuesday, July 21st. Jefferies Financial Group began coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 price target on the stock. Finally, Weiss Ratings lowered shares of USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, USA Rare Earth has a consensus rating of “Moderate Buy” and a consensus price target of $33.71.

USA Rare Earth Stock Down 5.0%

The company has a 50 day moving average of $16.20 and a two-hundred day moving average of $19.14. The firm has a market cap of $2.58 billion, a P/E ratio of -4.34 and a beta of 2.66.

USA Rare Earth (NASDAQ:USAR) last released its earnings results 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. Research analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of USAR. Overbrook Management Corp acquired a new stake in shares of USA Rare Earth during the 3rd quarter worth approximately $3,145,000. BlackRock Inc. acquired a new stake in shares of USA Rare Earth in the second quarter valued at $335,795,000. Weiss Asset Management LP acquired a new stake in shares of USA Rare Earth in the first quarter valued at approximately $17,103,000. Encompass Capital Advisors LLC bought a new position in USA Rare Earth in the 1st quarter worth approximately $7,038,000. Finally, Swiss National Bank raised its position in shares of USA Rare Earth by 67.6% during the first quarter. Swiss National Bank now owns 150,500 shares of the company’s stock worth $2,278,000 after acquiring an additional 60,700 shares during the last quarter.

About USA Rare Earth

USA Rare Earth, Inc is a U.S.-based critical minerals company focused on developing a domestic, vertically integrated supply chain for rare earth elements and rare earth permanent magnets. The company’s activities span the planned mining and processing of rare earth materials and the manufacture of neodymium-iron-boron (NdFeB) magnets, which are used in electric vehicles, renewable energy systems, electronics, aerospace and defense applications.

The company’s principal resource project is the Round Top rare earth and critical minerals project in Hudspeth County, Texas.