USA Rare Earth (NASDAQ:USAR) Trading Down 3.1% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price traded down 3.1% during trading on Thursday . The company traded as low as $26.28 and last traded at $27.10. 13,191,923 shares traded hands during mid-day trading, a decline of 29% from the average session volume of 18,591,682 shares. The stock had previously closed at $27.98.

Key USA Rare Earth News

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

• Positive Sentiment: USA Rare Earth finalized definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in CHIPS Act-related funding to expand its domestic rare earth supply chain, including mining, processing, metal, and magnet production. Reuters article
• Positive Sentiment: Needham initiated coverage on USAR with a Buy rating and a $39 price target, implying meaningful upside from recent trading levels. Benzinga coverage
• Positive Sentiment: The company also announced plans to build a major rare earth magnet manufacturing facility in South Carolina, reinforcing its strategy to become a vertically integrated U.S. rare earth supplier. Interesting Engineering article
• Positive Sentiment: Reports also highlighted that the South Carolina site selection and the broader $1.2 billion facility plan could strengthen USAR’s domestic production footprint and long-term growth story. Mining Technology article
• Neutral Sentiment: USA Rare Earth presented at the William Blair Growth Stock Conference, which may have helped keep the stock in focus but does not appear to be a major direct catalyst. Seeking Alpha article
• Negative Sentiment: Despite the bullish funding and project announcements, some coverage noted a “speed bump” and profit-taking as traders reacted to the stock’s sharp run-up and the complexity of converting federal backing into successful buildout and future cash flow. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on USAR shares. Roth Mkm reissued a “buy” rating on shares of USA Rare Earth in a research report on Thursday. Benchmark reiterated a “buy” rating on shares of USA Rare Earth in a research note on Wednesday. Canaccord Genuity Group boosted their price objective on USA Rare Earth from $29.00 to $32.00 and gave the company a “buy” rating in a research note on Tuesday, April 21st. Wall Street Zen upgraded shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 16th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $40.00 target price on shares of USA Rare Earth in a research note on Thursday. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, USA Rare Earth currently has an average rating of “Moderate Buy” and a consensus price target of $36.83.

USA Rare Earth Stock Down 3.1%

The company has a market capitalization of $6.04 billion, a PE ratio of -6.91 and a beta of 2.33. The company has a 50-day moving average price of $21.88 and a two-hundred day moving average price of $19.15.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.04. The company had revenue of $5.70 million during the quarter. As a group, equities analysts anticipate that USA Rare Earth Inc. will post -0.33 EPS for the current fiscal year.

Hedge Funds Weigh In On USA Rare Earth

Several hedge funds have recently made changes to their positions in the stock. Tudor Investment Corp ET AL purchased a new position in USA Rare Earth during the third quarter worth about $8,304,000. Jennison Associates LLC purchased a new position in shares of USA Rare Earth during the fourth quarter worth about $1,586,000. JPMorgan Chase & Co. purchased a new position in shares of USA Rare Earth during the third quarter worth about $734,000. Sovran Advisors LLC grew its holdings in shares of USA Rare Earth by 119.7% during the fourth quarter. Sovran Advisors LLC now owns 489,707 shares of the company’s stock worth $5,828,000 after purchasing an additional 266,783 shares in the last quarter. Finally, Guild Investment Management Inc. purchased a new position in shares of USA Rare Earth during the third quarter worth about $1,080,000.

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.