USA Rare Earth Inc. (NASDAQ:USAR – Get Free Report)’s stock price dropped 3.1% during trading on Thursday . The company traded as low as $26.28 and last traded at $27.10. Approximately 13,191,923 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 18,591,682 shares. The stock had previously closed at $27.98.
Key Stories Impacting USA Rare Earth
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
Analyst Upgrades and Downgrades
USAR has been the topic of a number of research analyst reports. Needham & Company LLC initiated coverage on shares of USA Rare Earth in a report on Monday. They issued a “buy” rating and a $39.00 price target on the stock. Wedbush upped their price objective on USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a report on Tuesday, May 12th. Weiss Ratings upgraded USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Wall Street Zen raised USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Finally, Roth Mkm reaffirmed a “buy” rating on shares of USA Rare Earth in a research note on Thursday. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $36.83.
USA Rare Earth Stock Down 3.1%
The company has a fifty day moving average price of $21.88 and a 200 day moving average price of $19.15. The stock has a market cap of $6.04 billion, a PE ratio of -6.91 and a beta of 2.33.
USA Rare Earth (NASDAQ:USAR – Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share (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, research analysts predict that USA Rare Earth Inc. will post -0.33 earnings per share for the current year.
Institutional Investors Weigh In On USA Rare Earth
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ascentis Independent Advisors purchased a new stake in USA Rare Earth during the 1st quarter valued at $27,000. Larson Financial Group LLC increased its position in shares of USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock valued at $25,000 after acquiring an additional 1,433 shares during the period. National Bank of Canada FI increased its position in shares of 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 valued at $36,000 after acquiring an additional 1,100 shares during the period. KBC Group NV bought a new position in shares of USA Rare Earth during the first quarter valued at about $35,000. Finally, NewEdge Advisors LLC raised its stake in shares of USA Rare Earth by 158.2% during the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after acquiring an additional 1,424 shares during the last 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.
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