USA Rare Earth (NASDAQ:USAR) Trading Down 4.3% After Analyst Downgrade

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price dropped 4.3% during trading on Thursday after Needham & Company LLC lowered their price target on the stock from $39.00 to $33.00. Needham & Company LLC currently has a buy rating on the stock. USA Rare Earth traded as low as $14.87 and last traded at $15.14. Approximately 8,385,992 shares traded hands during trading, a decline of 51% from the average daily volume of 17,243,881 shares. The stock had previously closed at $15.82.

Several other research firms also recently weighed in on USAR. Wedbush raised their price objective on USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Benchmark reissued a “buy” rating on shares of USA Rare Earth in a report on Wednesday, June 3rd. Northland Securities began coverage on USA Rare Earth in a report on Thursday, April 23rd. They issued an “outperform” rating and a $45.00 target price on the stock. Canaccord Genuity Group raised their target price on shares of USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a report on Tuesday, April 21st. Finally, Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Nine analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, USA Rare Earth presently has an average rating of “Moderate Buy” and an average target price of $35.83.

Insider Activity

In related news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director owned 18,783 shares of the company’s stock, valued at $427,688.91. This trade represents a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds have recently modified their holdings of the company. NewEdge Advisors LLC grew its holdings in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after buying an additional 1,424 shares in the last quarter. Raymond James Financial Inc. purchased a new position in shares of USA Rare Earth during the second quarter valued at approximately $223,000. Lighthouse Investment Partners LLC purchased a new position in shares of USA Rare Earth during the second quarter valued at approximately $329,000. Bank of America Corp DE lifted its stake in shares of USA Rare Earth by 465.7% during the second quarter. Bank of America Corp DE now owns 242,726 shares of the company’s stock valued at $2,659,000 after buying an additional 199,819 shares during the period. Finally, LMR Partners LLP acquired a new stake in USA Rare Earth during the second quarter worth approximately $145,000.

USA Rare Earth Price Performance

The stock has a market cap of $3.16 billion, a price-to-earnings ratio of -3.61 and a beta of 2.45. The stock’s 50-day moving average is $21.53 and its 200-day moving average is $20.60.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.04. The business had revenue of $5.70 million during the quarter. Analysts predict that USA Rare Earth Inc. will post -0.35 EPS for the current fiscal year.

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.