USA Rare Earth (NASDAQ:USAR) Shares Down 3.4% – Time to Sell?
by Jessica Moore · The Cerbat GemUSA Rare Earth Inc. (NASDAQ:USAR – Get Free Report)’s share price traded down 3.4% on Wednesday . The company traded as low as $17.01 and last traded at $17.06. 10,541,708 shares traded hands during trading, a decline of 36% from the average session volume of 16,370,601 shares. The stock had previously closed at $17.66.
More USA Rare Earth News
Here are the key news stories impacting USA Rare Earth this week:
- Positive Sentiment: The completed Serra Verde acquisition expands USA Rare Earth’s asset base with Brazil’s Pela Ema mine, complementing its U.K. metals operation, Oklahoma magnet facility and Round Top project. Analysts also continue to identify USAR as a potential beneficiary of long-term U.S. rare-earth and magnet-production growth, with some price targets implying substantial upside. USA Rare Earth acquired Serra Verde
- Neutral Sentiment: Reported short interest was listed at zero shares, with a zero-day days-to-cover ratio. Because the data appears inconsistent with the article’s description of a major increase in short interest, it provides little reliable insight into current trading sentiment. Short interest report
- Negative Sentiment: Investors are questioning whether USAR can manage the Serra Verde transaction’s $300 million cash payment and approximately 126.8 million newly issued shares while executing a difficult production ramp. The deal increases scale but also raises leverage, dilution and execution risks. Serra Verde acquisition and production ramp
- Negative Sentiment: USAR fell below its 50-day moving average as continuing losses, cash burn and uncertain production timing weighed on the outlook. The company also recently missed quarterly earnings expectations, reporting a loss of $0.15 per share versus a projected loss of $0.07. USAR falls below 50-day moving average
- Negative Sentiment: Rare-earth stocks broadly declined as improving U.S.-China diplomatic relations reduced expectations of prolonged trade restrictions and weakened the scarcity premium supporting U.S. producers. Rare-earth stocks tumble on U.S.-China thaw hopes
Wall Street Analysts Forecast Growth
USAR has been the topic of a number of research reports. Needham & Company LLC lowered their price target on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Wall Street Zen raised USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Weiss Ratings lowered USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. Roth Capital dropped their price target 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. Finally, 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. Ten analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $33.71.
Get Our Latest Stock Analysis on USA Rare Earth
USA Rare Earth Stock Performance
The business’s 50 day moving average is $17.38 and its two-hundred day moving average is $19.94. The firm has a market capitalization of $3.50 billion, a PE ratio of -6.45 and a beta of 2.58.
USA Rare Earth (NASDAQ:USAR – Get Free Report) last posted its 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 during the quarter. As a group, equities research analysts predict that USA Rare Earth Inc. will post -0.62 EPS for the current year.
Institutional Trading of USA Rare Earth
Several institutional investors and hedge funds have recently bought and sold shares of USAR. Allworth Financial LP purchased a new position in USA Rare Earth during the second quarter worth about $38,000. Ascentis Independent Advisors bought a new stake in shares of USA Rare Earth during the 1st quarter valued at about $27,000. Ameritas Advisory Services LLC boosted its position in shares of USA Rare Earth by 276.3% during the 2nd quarter. Ameritas Advisory Services LLC now owns 1,987 shares of the company’s stock valued at $43,000 after acquiring an additional 1,459 shares during the last quarter. First PREMIER Bank grew its holdings in shares of USA Rare Earth by 100.0% during the second quarter. First PREMIER Bank now owns 2,000 shares of the company’s stock worth $43,000 after purchasing an additional 1,000 shares in the last quarter. Finally, MCF Advisors LLC purchased a new position in shares of USA Rare Earth during the second quarter worth about $43,000.
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.