USA Rare Earth (NASDAQ:USAR) Trading Down 6.5% – What’s Next?

USA Rare Earth Inc. (NASDAQ:USAR) shares dropped 6.5% during mid-day trading on Friday . The company traded as low as $17.81 and last traded at $17.99. 12,857,167 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 16,565,467 shares. The stock had previously closed at $19.25.

Analyst Ratings Changes

A number of brokerages have commented on USAR. Needham & Company LLC reduced their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a research note on Wednesday, July 22nd. Roth Capital cut their price target on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Wall Street Zen upgraded USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Benchmark reissued a “buy” rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Finally, Weiss Ratings downgraded USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research report on Tuesday, August 11th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $35.83.

USA Rare Earth Stock Performance

The company has a 50 day moving average of $18.20 and a 200-day moving average of $20.11. The stock has a market cap of $4.01 billion, a price-to-earnings ratio of -7.41 and a beta of 2.55.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million for the quarter. On average, research analysts anticipate that USA Rare Earth Inc. will post -0.62 EPS 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

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of USA Rare Earth in the 2nd quarter valued at $335,795,000. Alyeska Investment Group L.P. lifted its holdings in USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock worth $219,034,000 after buying an additional 3,909,455 shares during the last quarter. Bayshore Capital Advisors LLC purchased a new stake in USA Rare Earth during the 4th quarter worth about $102,378,000. Vanguard Group Inc. boosted its position in shares of USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock worth $71,834,000 after acquiring an additional 5,083,288 shares in the last quarter. Finally, State Street Corp boosted its position in shares of USA Rare Earth by 78.4% during the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock worth $59,891,000 after acquiring an additional 2,212,177 shares in the last quarter.

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.