USA Rare Earth (NASDAQ:USAR) Stock Price Down 2.6% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR)’s share price was down 2.6% during mid-day trading on Wednesday . The company traded as low as $17.95 and last traded at $18.41. Approximately 11,006,520 shares changed hands during trading, a decline of 34% from the average session volume of 16,802,213 shares. The stock had previously closed at $18.91.

Key Stories Impacting USA Rare Earth

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

• Positive Sentiment: Sector-wide rally: USA Rare Earth was among several U.S. rare-earth stocks moving higher as investors focused on the strategic importance of domestic critical-minerals supply chains and reduced reliance on foreign sources. The company’s shares were reported up roughly 9% during Friday’s session. Rare Earth Stocks Soar on Friday: MP Materials Up 8%, USA Rare Earth Up 9%, NioCorp Up 3%. What’s Behind the Jump?
• Positive Sentiment: Analyst support: Benchmark Co. maintained its Buy rating, while Cantor Fitzgerald also assigned a Buy rating. Northland Securities reiterated an Outperform rating and a $45 price target, substantially above the recent trading level, supporting the bullish case for the stock. Benchmark Co. Sticks to Its Buy Rating for USA Rare Earth (USAR)
• Neutral Sentiment: Long-term outlook remains speculative: Northland expects USA Rare Earth to approach modest profitability by fiscal 2028, forecasting $0.01 in EPS, but projects a $0.66 per-share loss for fiscal 2027. The estimates point to a potential long-term improvement, while also highlighting that the company remains loss-making in the near term. USA Rare Earth Gains 7%, MP Materials Jumps 8%: Here’s Why Critical Minerals Are Moving Today
• Negative Sentiment: Estimates remain weak: Northland lowered its third-quarter 2026 EPS forecast to a loss of $0.16 from a loss of $0.12, underscoring ongoing execution and profitability risks. USA Rare Earth also recently reported a quarterly loss that exceeded analysts’ expectations, adding fundamental risk despite the positive sector momentum.

Wall Street Analysts Forecast Growth

USAR has been the subject of several analyst reports. Needham & Company LLC dropped their target price on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. Wedbush increased their price target on shares of USA Rare Earth from $29.00 to $35.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Cantor Fitzgerald reissued an “overweight” rating on shares of USA Rare Earth in a research note on Tuesday. Roth Capital lowered their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. Finally, Weiss Ratings cut USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday. Nine equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, USA Rare Earth has a consensus rating of “Moderate Buy” and an average price target of $35.83.

USA Rare Earth Stock Performance

The company has a market capitalization of $4.41 billion, a P/E ratio of -8.14 and a beta of 2.55. The firm’s fifty day moving average is $18.91 and its 200-day moving average is $20.45.

USA Rare Earth (NASDAQ:USAR) last issued its quarterly earnings data on Monday, August 10th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $5.82 million for the quarter. As a group, analysts expect that USA Rare Earth Inc. will post -0.47 EPS for the current fiscal year.

Insider Activity at USA Rare Earth

In other news, Director Carolyn Trabuco sold 13,000 shares of the stock in a transaction on 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 directly owned 18,783 shares in the company, valued at approximately $427,688.91. This represents a 40.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 9.10% of the company’s stock.

Hedge Funds Weigh In On USA Rare Earth

A number of institutional investors and hedge funds have recently bought and sold shares of USAR. Sterling Capital Management LLC boosted its stake in shares of USA Rare Earth by 29.1% during the first quarter. Sterling Capital Management LLC now owns 3,676 shares of the company’s stock valued at $56,000 after purchasing an additional 829 shares in the last quarter. Pier 88 Investment Partners LLC increased its stake in shares of USA Rare Earth by 2.5% in the fourth quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company’s stock valued at $413,000 after buying an additional 840 shares during the period. SBI Securities Co. Ltd. raised its holdings in USA Rare Earth by 20.4% in the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company’s stock valued at $66,000 after buying an additional 936 shares during the last quarter. Advisory Services Network LLC raised its holdings in USA Rare Earth by 2.0% in the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company’s stock valued at $900,000 after buying an additional 1,032 shares during the last quarter. Finally, National Bank of Canada FI boosted its position in USA Rare Earth by 110.0% during the 3rd 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 during the period.

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.