USA Rare Earth (NASDAQ:USAR) Stock Price Down 6% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) shares traded down 6% during mid-day trading on Thursday . The company traded as low as $16.00 and last traded at $16.04. Approximately 16,960,073 shares changed hands during mid-day trading, an increase of 4% from the average daily volume of 16,374,325 shares. The stock had previously closed at $17.06.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: USA Rare Earth broke ground on a South Carolina rare-earth metal and magnet facility representing an expected investment of approximately $1.2 billion. The project is expected to create about 490 jobs and expand the company’s integrated mine-to-magnet supply chain for defense, aerospace, semiconductor, energy and other advanced industries. USA Rare Earth Breaks Ground on Advanced Rare Earth Metal and Magnet Manufacturing Facility
• Positive Sentiment: A MarketBeat feature included USAR among materials and energy stocks priced below $20 with Moderate Buy ratings, highlighting analyst price targets that imply substantial potential upside if rare-earth and domestic critical-materials growth plans succeed. 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials
• Neutral Sentiment: A recent analysis described USAR as a potentially attractive “buy-the-dip” opportunity because of its manufacturing and supply-chain developments, but emphasized that the stock remains highly speculative and well below its prior high. USA Rare Earth Stock Is Down 60% — Is September the Month to Buy the Dip?
• Negative Sentiment: Rare-earth shares sold off after signs of diplomatic warming between Washington and Beijing reduced expectations that trade restrictions would sustain a scarcity premium for U.S. producers. The development challenges the policy-driven rationale behind the sector’s earlier rally. Rare Earth Stocks Tumble on U.S.-China Thaw Hopes

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Weiss Ratings downgraded shares of USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a report on Tuesday, August 11th. Wall Street Zen upgraded shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Needham & Company LLC decreased their price objective on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Roth Capital reduced their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Finally, Jefferies Financial Group started coverage on USA Rare Earth in a research note on Wednesday, September 2nd. They issued a “buy” rating and a $21.00 price objective for the company. Ten analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, USA Rare Earth has an average rating of “Moderate Buy” and an average price target of $33.71.

USA Rare Earth Trading Down 6.0%

The business’s fifty day simple moving average is $17.44 and its 200-day simple moving average is $19.95. The firm has a market cap of $3.58 billion, a P/E ratio of -6.60 and a beta of 2.58.

USA Rare Earth (NASDAQ:USAR) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.08). The company had revenue of $5.82 million during the quarter. As a group, research analysts expect that USA Rare Earth Inc. will post -0.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Larson Financial Group LLC grew its stake in USA Rare Earth by 217.5% in 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 in the last quarter. NewEdge Advisors LLC grew its position in USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after acquiring an additional 1,424 shares in the last quarter. Ascentis Independent Advisors bought a new position in USA Rare Earth in the first quarter valued at $27,000. Center for Financial Planning Inc. bought a new stake in USA Rare Earth during the fourth quarter worth about $28,000. Finally, Havemeyer Place LP bought a new position in shares of USA Rare Earth during the 4th quarter valued at about $33,000.

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.