USA Rare Earth (NASDAQ:USAR) Shares Down 9.1% – Here’s What Happened

Shares of USA Rare Earth Inc. (NASDAQ:USAR) fell 9.1% during mid-day trading on Thursday . The company traded as low as $22.32 and last traded at $23.09. 19,549,586 shares changed hands during mid-day trading, an increase of 4% from the average session volume of 18,780,994 shares. The stock had previously closed at $25.41.

Key USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth is pursuing a $2.8B strategic play — a Brazilian acquisition plus a European processing partnership — to build an independent, vertically integrated rare‑earth supply chain, which could materially increase feedstock control and EBITDA visibility. USA Rare Earth’s $2.8B Power Play to Secure the Supply Chain
• Positive Sentiment: CEO commentary frames the U.S. as being in the “early innings” of rare‑earth independence from China — a narrative that supports long‑term demand for domestic producers and policy tailwinds (infrastructure/defense incentives). USA Rare Earth CEO says U.S. in ‘early innings’ of rare earths independence from China
• Positive Sentiment: New analyst coverage: Northland started coverage with an “Outperform” and $45 price target, signaling strong upside expectations from some sell‑side desks and likely supporting investor interest. Northland Outperform, $45 PT
• Positive Sentiment: Analyst/commentary pieces (Seeking Alpha, The Motley Fool) highlight the Serra Verde deal and other derisking steps as reasons the company’s thesis just became more bullish — this fuels speculative buying and rerating narratives. USA Rare Earth: The Thesis Just Got So Much More Bullish
• Neutral Sentiment: Research coverage expansion continues: Wedbush began covering USAR, which increases analyst attention and liquidity but does not by itself change fundamentals. USA Rare Earth Research Coverage Started at Wedbush
• Neutral Sentiment: Unusually large options activity was reported, indicating elevated speculative interest and short‑term positioning that can amplify intraday moves. USA Rare Earth Target of Unusually Large Options Trading
• Neutral Sentiment: Regional peer exploration news (Canamera drilling in Minas Gerais, Brazil) signals more exploration activity in the region that could affect future feedstock dynamics, but it’s early and company‑specific. Canamera Accelerates Turvolândia REE Program
• Negative Sentiment: Fundamental caution: analyst write‑ups (Zacks) stress ongoing losses, high costs and funding risks for USAR and peers — reminders that sizable dilution and execution risk remain, which can cap valuation until projects generate stable cash flow. USAR vs. NB: Which Mining Stock Offers a Better Value Right Now?

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on USAR. Benchmark began coverage on shares of USA Rare Earth in a report on Wednesday, January 21st. They issued a “buy” rating on the stock. Canaccord Genuity Group upped 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. Wedbush assumed coverage on shares of USA Rare Earth in a report on Monday. They issued an “outperform” rating and a $29.00 target price on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of USA Rare Earth in a research note on Friday, March 27th. Finally, Cantor Fitzgerald lifted their target price on USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Eight equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, USA Rare Earth has an average rating of “Moderate Buy” and a consensus target price of $34.20.

USA Rare Earth Price Performance

The company has a market capitalization of $5.03 billion, a P/E ratio of -7.70 and a beta of 1.34. The company’s 50-day moving average price is $18.30 and its two-hundred day moving average price is $18.87.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings data on Monday, March 30th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.07). The firm had revenue of $1.64 million for the quarter. On average, analysts anticipate that USA Rare Earth Inc. will post -0.71 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Carolyn Trabuco acquired 1,300 shares of USA Rare Earth stock in a transaction dated Thursday, January 29th. The stock was bought at an average price of $22.60 per share, for a total transaction of $29,380.00. Following the completion of the acquisition, the director directly owned 1,300 shares in the company, valued at approximately $29,380. The trade was a ∞ increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Michael Blitzer acquired 100,000 shares of USA Rare Earth stock in a transaction dated Thursday, January 29th. The shares were purchased at an average price of $21.44 per share, with a total value of $2,144,000.00. Following the acquisition, the director owned 847,500 shares of the company’s stock, valued at approximately $18,170,400. This trade represents a 13.38% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 46.60% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in USAR. Larson Financial Group LLC increased its position in USA Rare Earth by 217.5% during the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock worth $25,000 after buying an additional 1,433 shares during the period. NewEdge Advisors LLC increased its position in USA Rare Earth by 158.2% during the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after buying an additional 1,424 shares during the period. Center for Financial Planning Inc. bought a new position in USA Rare Earth during the 4th quarter worth $28,000. Havemeyer Place LP bought a new stake in USA Rare Earth in the 4th quarter valued at about $33,000. Finally, National Bank of Canada FI boosted its holdings in USA Rare Earth by 110.0% in the 3rd quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock valued at $36,000 after purchasing an additional 1,100 shares during the period.

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.