USA Rare Earth (NASDAQ:USAR) Stock Falls 2% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR) dropped 2% during trading on Thursday. The company traded as low as $13.47 and last traded at $13.80. Approximately 13,195,414 shares were traded during trading, a decline of 18% from the average daily volume of 16,106,174 shares. The stock had previously closed at $14.08.

Analyst Upgrades and Downgrades

USAR has been the subject of several research analyst reports. Benchmark reiterated a “buy” rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Roth Capital dropped their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Needham & Company LLC reduced their price target 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. Jefferies Financial Group assumed coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 price objective for the company. 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 equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $33.71.

USA Rare Earth Stock Down 2.0%

The firm has a market cap of $3.38 billion, a price-to-earnings ratio of -5.68 and a beta of 2.58. The company’s fifty day moving average is $16.82 and its 200 day moving average is $19.53.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings results 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 business had revenue of $5.82 million for the quarter. On average, equities research analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of USAR. MCF Advisors LLC acquired a new position in shares of USA Rare Earth during the 2nd quarter worth approximately $43,000. RFG Advisory LLC grew its stake in shares of USA Rare Earth by 459.1% in the second quarter. RFG Advisory LLC now owns 59,835 shares of the company’s stock valued at $1,291,000 after buying an additional 49,133 shares in the last quarter. IFP Advisors Inc grew its stake in shares of USA Rare Earth by 477.4% in the second quarter. IFP Advisors Inc now owns 67,896 shares of the company’s stock valued at $1,465,000 after buying an additional 56,137 shares in the last quarter. Arizona State Retirement System increased its holdings in USA Rare Earth by 129.7% during the second quarter. Arizona State Retirement System now owns 48,117 shares of the company’s stock worth $1,038,000 after buying an additional 27,166 shares during the last quarter. Finally, Nykredit A S acquired a new position in USA Rare Earth during the second quarter worth $115,000.

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.