USA Rare Earth (NASDAQ:USAR) Trading Down 1.4% – Should You Sell?

USA Rare Earth Inc. (NASDAQ:USAR) shares fell 1.4% on Tuesday . The company traded as low as $24.77 and last traded at $26.35. 48,805,916 shares changed hands during trading, an increase of 102% from the average session volume of 24,185,480 shares. The stock had previously closed at $26.72.

Key Headlines Impacting USA Rare Earth

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

• Positive Sentiment: Dept. of Commerce letter of intent for ~$1.6B (reported structure: $1.3B senior secured loan + $277M in grants) and a proposed ~10% U.S. equity stake — gives the company a large, government-backed liquidity cushion that reduces financing risk. GlobeNewswire LOI Announcement
• Positive Sentiment: Company also secured a $1.5B private investment (PIPE) — combined financing tops ~$3.1B, supporting accelerated timelines for Stillwater Line 1a commissioning (Q1 2026) and moving Round Top toward late‑2028 commercial production. MarketBeat: Washington’s $1.6B Endorsement
• Positive Sentiment: Government backing is validating USA Rare Earth as a strategic national‑security play (heavy rare earths like dysprosium/terbium) and has prompted sector rotation into USAR from incumbents. Reuters: Shares Surge on Investment Report
• Neutral Sentiment: CEO interviews and a shareholder/analyst presentation provided color on the deal origin, timelines and project status — useful for assessing execution progress but not definitive proof of outcomes. CNBC: How the Deal Came Together Seeking Alpha: Shareholder/Analyst Presentation
• Negative Sentiment: The financing currently rests in a non‑binding Letter of Intent and is subject to conditions and closing requirements — execution risk and timing uncertainty remain. CNBC: Deal Details & Conditions
• Negative Sentiment: Deal mechanics include government share and warrant placements plus a large PIPE — these increase outstanding share counts and could be dilutive to existing holders even as they fund development. MarketBeat: Financing Structure & Dilution
• Negative Sentiment: USA Rare Earth is still effectively a pre‑revenue, unprofitable developer; past quarters showed losses, so operational execution is required to translate the capital into profitable production. MarketBeat: Company Overview & Risks

Analyst Upgrades and Downgrades

USAR has been the topic of several recent analyst reports. Benchmark began coverage on USA Rare Earth in a research note on Wednesday, January 21st. They set a “buy” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of USA Rare Earth in a report on Monday, December 29th. William Blair began coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They set an “outperform” rating for the company. UBS Group reiterated a “buy” rating on shares of USA Rare Earth in a research note on Monday, December 8th. Finally, Canaccord Genuity Group raised their price objective on USA Rare Earth from $23.00 to $33.00 and gave the company a “buy” rating in a research report on Tuesday. Six analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $28.00.

USA Rare Earth Stock Performance

The stock’s fifty day moving average is $15.71 and its 200 day moving average is $17.13. The stock has a market cap of $3.50 billion, a P/E ratio of -50.67 and a beta of 0.96.

USA Rare Earth (NASDAQ:USAR) last announced its earnings results on Thursday, November 6th. The company reported ($0.25) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.19).

Hedge Funds Weigh In On USA Rare Earth

A number of large investors have recently made changes to their positions in USAR. International Assets Investment Management LLC bought a new stake in USA Rare Earth during the 2nd quarter valued at $250,000. MMCAP International Inc. SPC bought a new position in USA Rare Earth in the second quarter worth about $261,000. Pier 88 Investment Partners LLC purchased a new stake in shares of USA Rare Earth during the second quarter valued at about $588,000. SBI Securities Co. Ltd. boosted its holdings in shares of USA Rare Earth by 10,448.0% in the 2nd quarter. SBI Securities Co. Ltd. now owns 2,637 shares of the company’s stock valued at $29,000 after buying an additional 2,612 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of USA Rare Earth by 2,437.5% in the 2nd quarter. Geode Capital Management LLC now owns 653,290 shares of the company’s stock worth $7,160,000 after buying an additional 627,545 shares during the last quarter.

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.