USA Rare Earth (NASDAQ:USAR) Stock Price Down 4.3% on Analyst Downgrade

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price was down 4.3% during trading on Thursday after Needham & Company LLC lowered their price target on the stock from $39.00 to $33.00. Needham & Company LLC currently has a buy rating on the stock. USA Rare Earth traded as low as $14.87 and last traded at $15.14. 8,385,992 shares changed hands during trading, a decline of 51% from the average session volume of 17,243,881 shares. The stock had previously closed at $15.82.

A number of other equities analysts have also recently weighed in on USAR. Roth Capital decreased their price target on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a report on Tuesday. Wall Street Zen raised shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Benchmark restated a “buy” rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Wedbush upped their target price on shares of USA Rare Earth from $29.00 to $35.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Finally, Northland Securities started coverage on shares of USA Rare Earth in a report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 price target for the company. Nine analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, USA Rare Earth has a consensus rating of “Moderate Buy” and a consensus target price of $35.83.

Insider Buying and Selling

In related news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $22.77, for a total value of $296,010.00. Following the completion of the transaction, the director owned 18,783 shares of the company’s stock, valued at approximately $427,688.91. This represents a 40.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 9.10% of the company’s stock.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: USA Rare Earth entered definitive agreements to buy minority stakes of about 13.6% each in French rare-earth processor Carester, formalizing a strategic partnership that expands its European midstream platform and should help secure processing capacity and supply-chain integration. USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester
• Positive Sentiment: The Carester deal also gives USA Rare Earth access to rare-earth oxides from the planned Caremag facility in France, while Carester gains access to feedstock from Serra Verde and Round Top, potentially improving commercialization visibility for both sides. USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester, Strengthening its European Rare Earth Partnership
• Neutral Sentiment: The company also announced a leadership transition earlier this week, which may keep investors focused on execution risk as USA Rare Earth builds out its mine-to-magnet strategy. USAR Stock Alert: What to Know as USA Rare Earth Announces Leadership Transition
• Negative Sentiment: Needham lowered its price target on USAR to $33 from $39, which may signal more caution on near-term valuation even though the firm kept a buy rating. USA Rare Earth price target lowered by Needham

Institutional Trading of USA Rare Earth

A number of hedge funds have recently made changes to their positions in the stock. Bayshore Capital Advisors LLC acquired a new stake in USA Rare Earth in the fourth quarter valued at $102,378,000. Vanguard Group Inc. boosted its stake in USA Rare Earth by 533.3% during the 4th quarter. Vanguard Group Inc. now owns 6,036,486 shares of the company’s stock valued at $71,834,000 after acquiring an additional 5,083,288 shares during the last quarter. Alyeska Investment Group L.P. grew its holdings in USA Rare Earth by 44.0% during the 3rd quarter. Alyeska Investment Group L.P. now owns 12,799,325 shares of the company’s stock worth $219,034,000 after acquiring an additional 3,909,455 shares in the last quarter. Inflection Point Holdings II LLC acquired a new position in USA Rare Earth during the 4th quarter worth $37,188,000. Finally, State Street Corp increased its position in shares of USA Rare Earth by 78.4% in the 4th quarter. State Street Corp now owns 5,032,866 shares of the company’s stock worth $59,891,000 after purchasing an additional 2,212,177 shares during the last quarter.

USA Rare Earth Trading Down 4.3%

The company’s 50-day moving average price is $21.73 and its two-hundred day moving average price is $20.64. The company has a market cap of $3.38 billion, a P/E ratio of -3.86 and a beta of 2.45.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) EPS for the quarter, topping the consensus estimate of ($0.16) by $0.04. The company had revenue of $5.70 million for the quarter. As a group, analysts anticipate that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

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.