USA Rare Earth (NASDAQ:USAR) Trading Down 12.8% – Should You Sell?

Shares of USA Rare Earth Inc. (NASDAQ:USAR) were down 12.8% during trading on Monday . The company traded as low as $20.82 and last traded at $21.28. Approximately 19,411,076 shares changed hands during trading, an increase of 4% from the average daily volume of 18,717,502 shares. The stock had previously closed at $24.39.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on USAR. Wall Street Zen upgraded shares of USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday. Weiss Ratings upgraded shares of USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a report on Thursday. Cantor Fitzgerald lifted their price target on USA Rare Earth from $30.00 to $35.00 and gave the company an “overweight” rating in a research note on Thursday. Canaccord Genuity Group boosted their price objective on USA Rare Earth from $29.00 to $32.00 and gave the stock a “buy” rating in a report on Tuesday, April 21st. Finally, Roth Mkm set a $30.00 price objective on USA Rare Earth in a research note on Monday, April 20th. Eight equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $35.40.

USA Rare Earth Stock Performance

The company’s 50 day moving average price is $20.03 and its 200-day moving average price is $18.39. The stock has a market cap of $4.64 billion, a P/E ratio of -5.43 and a beta of 2.38.

USA Rare Earth (NASDAQ:USAR) last released its quarterly earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million for the quarter. On average, analysts forecast that USA Rare Earth Inc. will post -0.4 earnings per share for the current fiscal year.

Institutional Trading of USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the business. Tudor Investment Corp ET AL bought a new stake in shares of USA Rare Earth during the 3rd quarter worth $8,304,000. Jennison Associates LLC bought a new position in USA Rare Earth during the fourth quarter valued at about $1,586,000. JPMorgan Chase & Co. bought a new position in USA Rare Earth during the third quarter valued at about $734,000. Sovran Advisors LLC increased its holdings in 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 buying an additional 266,783 shares during the last quarter. Finally, Guild Investment Management Inc. bought a new stake in USA Rare Earth in 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.