USA Rare Earth (NASDAQ:USAR) Shares Down 8.2% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) dropped 8.2% on Thursday . The company traded as low as $16.66 and last traded at $16.79. Approximately 11,251,109 shares were traded during trading, a decline of 10% from the average daily volume of 12,540,414 shares. The stock had previously closed at $18.28.

Wall Street Analyst Weigh In

Several research firms recently issued reports on USAR. Canaccord Genuity Group lifted their price target on shares of USA Rare Earth from $22.00 to $23.00 and gave the company a “buy” rating in a research report on Friday, November 7th. William Blair initiated coverage on USA Rare Earth in a research report on Monday, October 20th. They issued an “outperform” rating on the stock. Roth Capital set a $40.00 price target on shares of USA Rare Earth in a research note on Friday, October 10th. UBS Group restated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. Six investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, USA Rare Earth currently has a consensus rating of “Moderate Buy” and a consensus price target of $26.33.

USA Rare Earth Trading Down 8.2%

The stock has a 50 day simple moving average of $14.99 and a 200-day simple moving average of $16.50. The firm has a market capitalization of $2.23 billion, a P/E ratio of -32.29 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR) last issued its earnings results on Thursday, November 6th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.19).

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. CoreCap Advisors LLC raised its holdings in shares of USA Rare Earth by 583.8% in the fourth quarter. CoreCap Advisors LLC now owns 7,433 shares of the company’s stock worth $88,000 after buying an additional 6,346 shares during the last quarter. Stonehage Fleming Financial Services Holdings Ltd acquired a new stake in shares of USA Rare Earth during the 4th quarter valued at about $311,000. MFG Wealth Management Inc. acquired a new position in shares of USA Rare Earth during the 4th quarter worth approximately $659,000. GK Wealth Management LLC acquired a new stake in shares of USA Rare Earth in the fourth quarter valued at about $197,000. Finally, JPMorgan Chase & Co. purchased a new position in shares of USA Rare Earth in the third quarter valued at approximately $734,000.

USA Rare Earth Company Profile

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.