USA Rare Earth (NASDAQ:USAR) Shares Down 2.2% Following Analyst Downgrade

USA Rare Earth Inc. (NASDAQ:USAR) shares traded down 2.2% on Wednesday after Canaccord Genuity Group lowered their price target on the stock from $33.00 to $29.00. Canaccord Genuity Group currently has a buy rating on the stock. USA Rare Earth traded as low as $14.64 and last traded at $14.80. 11,511,912 shares were traded during mid-day trading, a decline of 40% from the average session volume of 19,205,809 shares. The stock had previously closed at $15.14.

USAR has been the topic of a number of other reports. Cantor Fitzgerald boosted their target price on shares of USA Rare Earth from $28.00 to $35.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. Benchmark initiated coverage on USA Rare Earth in a research note on Wednesday, January 21st. They set a “buy” rating on the stock. UBS Group reaffirmed a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Roth Mkm boosted their target price on USA Rare Earth from $25.00 to $35.00 and gave the company a “buy” rating in a research report on Monday, January 26th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of USA Rare Earth in a research report on Friday, March 27th. Six research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $33.00.

Insider Buying and Selling

In other news, Director Carolyn Trabuco acquired 1,300 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The shares were bought at an average price of $22.60 per share, with a total value of $29,380.00. Following the completion of the purchase, the director directly owned 1,300 shares in the company, valued at $29,380. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Blitzer bought 100,000 shares of the firm’s stock in a transaction on Thursday, January 29th. The shares were purchased at an average cost of $21.44 per share, with a total value of $2,144,000.00. Following the completion of the transaction, the director owned 847,500 shares in the company, valued at $18,170,400. This represents a 13.38% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 46.60% of the company’s stock.

More USA Rare Earth News

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

• Positive Sentiment: Major funding and capital raise move the buildout closer — USAR secured $1.5B in private proceeds and a planned $1.6B commitment from the U.S. administration to support its domestic rare-earth supply chain, narrowing the funding gap for Round Top and downstream plans. USA Rare Earth Funding And Acquisition Test Mine To Magnet Promise
• Positive Sentiment: Acquisition and production milestones: the Less Common Metals purchase and commissioning of the Stillwater magnet site mean USAR has begun commercial magnet production and should generate increasing revenue from Q2 2026 onward. USA Rare Earth: As Losses Rise, Operational Progress Matters More
• Neutral Sentiment: Analyst view trimmed but still constructive — Canaccord lowered its price target from $33 to $29 while keeping a Buy rating, signaling continued analyst conviction despite near-term execution risk. Canaccord price target update
• Neutral Sentiment: Macro backdrop supports long-term demand — U.S.–China rare-earth tensions and policy support for domestic supply chains are positive tailwinds but don’t eliminate project or timing risk. China, USA, and the rare earth trade war
• Negative Sentiment: Earnings miss and widening losses — USAR reported a larger adjusted loss per share and only $1.64M of revenue for the quarter, disappointing investors focused on near-term financials. Why USA Rare Earth Stock Crashed Today
• Negative Sentiment: Funding and execution risk remain material — Department of Commerce support is not finalized, project capex could exceed estimates, and delays at Round Top or in scaling processing/magnet operations would push out revenue and require more capital. Operational progress and funding caveats

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Larson Financial Group LLC raised its holdings in shares of USA Rare Earth by 217.5% in the 4th quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock valued at $25,000 after purchasing an additional 1,433 shares in the last quarter. National Bank of Canada FI raised its stake in USA Rare Earth by 110.0% in the third quarter. National Bank of Canada FI now owns 2,100 shares of the company’s stock worth $36,000 after buying an additional 1,100 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in 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 during the period. Center for Financial Planning Inc. bought a new stake in USA Rare Earth during the 4th quarter valued at $28,000. Finally, Havemeyer Place LP purchased a new position in shares of USA Rare Earth in the 4th quarter valued at $33,000.

USA Rare Earth Trading Down 2.2%

The stock has a market capitalization of $1.96 billion, a P/E ratio of -4.93 and a beta of 1.34. The company has a 50-day moving average price of $19.87 and a 200 day moving average price of $18.82.

USA Rare Earth (NASDAQ:USAR) last posted its earnings results on Monday, March 30th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.07). The business had revenue of $1.64 million during the quarter.

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.