USA Rare Earth (NASDAQ:USAR) Stock Falls 4.3% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) shares fell 4.3% on Monday. The stock traded as low as $10.06 and last traded at $10.09. Approximately 10,304,585 shares traded hands during trading, a decline of 36% from the average daily volume of 16,004,741 shares. The stock had previously closed at $10.54.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on USAR. Needham & Company LLC lowered 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. Jefferies Financial Group started coverage on USA Rare Earth in a research report on Wednesday, September 2nd. They issued a “buy” rating and a $21.00 price target on the stock. Roth Capital reduced their price objective on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Weiss Ratings downgraded USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating on shares of USA Rare Earth in a research report on Tuesday, August 11th. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, USA Rare Earth presently has a consensus rating of “Moderate Buy” and a consensus price target of $33.71.

USA Rare Earth Trading Down 0.3%

The company has a market capitalization of $2.46 billion, a price-to-earnings ratio of -4.14 and a beta of 2.66. The firm’s 50 day simple moving average is $15.67 and its 200-day simple moving average is $19.05.

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 firm had revenue of $5.82 million for the quarter. As a group, sell-side analysts forecast that USA Rare Earth Inc. will post -0.62 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in USAR. BlackRock Inc. acquired a new position in shares of USA Rare Earth during the 2nd quarter worth $335,795,000. Bank of America Corp DE purchased a new position in shares of USA Rare Earth in the 2nd quarter valued at about $32,762,000. Weiss Asset Management LP purchased a new position in shares of USA Rare Earth in the 1st quarter valued at about $17,103,000. Korea Investment CORP acquired a new stake in shares of USA Rare Earth in the second quarter valued at about $18,108,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of USA Rare Earth in the second quarter valued at about $13,510,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc (NASDAQ:USAR) is developing an integrated domestic supply chain for rare earth and other critical minerals. The company’s activities include the exploration and planned extraction of mineral resources, processing and separation of rare earth elements, and the production of sintered neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company’s flagship asset is the Round Top Mountain project in Hudspeth County, Texas.