USA Rare Earth (NASDAQ:USAR) Trading Down 1.9% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s stock price dropped 1.9% during trading on Wednesday . The company traded as low as $14.88 and last traded at $15.10. Approximately 15,154,893 shares traded hands during trading, a decline of 7% from the average daily volume of 16,276,476 shares. The stock had previously closed at $15.40.

USA Rare Earth News Roundup

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

• Positive Sentiment: USA Rare Earth, Pasqal (NASDAQ: PSQL) and Riven Systems announced a strategic partnership to develop next-generation rare-earth separation technology. The project will combine USAR’s mineral-processing expertise, Pasqal’s neutral-atom quantum computing and Riven’s AI-powered automated chemistry laboratory. USA Rare Earth, Pasqal and Riven Systems Partner to Advance Next-Generation Technologies for Critical Mineral Production
• Positive Sentiment: The partners will test new separation methods using material from USA Rare Earth’s Round Top project in Texas. Quantum machine learning and automated experiments could help identify more efficient chemicals for separating rare-earth elements, potentially improving processing economics and supporting USAR’s effort to build a U.S.-based critical-minerals supply chain. USAR Turns to AI and Quantum Computing to Tackle a Key Supply Bottleneck
• Neutral Sentiment: The announcement appears to be the primary catalyst behind the increased interest in USAR. However, the companies did not disclose financial terms, commercial timelines or expected production benefits, so the partnership is currently a research and development opportunity rather than an immediate earnings driver. Investors should also weigh execution risk as USA Rare Earth remains loss-making and its shares have traded below their longer-term moving averages.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on USAR shares. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of USA Rare Earth in a report on Tuesday, August 11th. Roth Capital cut their target price on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Weiss Ratings lowered USA Rare Earth from a “sell (d)” rating to a “sell (d-)” rating in a research note on Tuesday, August 11th. Benchmark reiterated a “buy” rating on shares of USA Rare Earth in a research report on Wednesday, June 3rd. Finally, Needham & Company LLC cut their price objective on USA Rare Earth from $39.00 to $33.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $33.71.

USA Rare Earth Stock Up 3.5%

The firm has a market cap of $3.82 billion, a price-to-earnings ratio of -6.43 and a beta of 2.58. The firm has a 50 day moving average of $17.05 and a 200 day moving average of $19.80.

USA Rare Earth (NASDAQ:USAR) last released its quarterly earnings data on Monday, August 10th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.08). The firm had revenue of $5.82 million for the quarter. Equities analysts expect that USA Rare Earth Inc. will post -0.62 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. MCF Advisors LLC acquired a new stake in shares of USA Rare Earth in the 2nd quarter worth about $43,000. RFG Advisory LLC boosted its stake in USA Rare Earth by 459.1% during the 2nd quarter. RFG Advisory LLC now owns 59,835 shares of the company’s stock valued at $1,291,000 after purchasing an additional 49,133 shares during the last quarter. IFP Advisors Inc increased its holdings in USA Rare Earth by 477.4% during the 2nd quarter. IFP Advisors Inc now owns 67,896 shares of the company’s stock worth $1,465,000 after purchasing an additional 56,137 shares in the last quarter. Arizona State Retirement System increased its holdings in USA Rare Earth by 129.7% during the 2nd quarter. Arizona State Retirement System now owns 48,117 shares of the company’s stock worth $1,038,000 after purchasing an additional 27,166 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of USA Rare Earth in the second quarter worth approximately $115,000.

USA Rare Earth Company Profile

USA Rare Earth, Inc is a U.S.-focused critical minerals company developing an integrated rare earth supply chain. Its activities center on the production of rare earth materials used in permanent magnets, electric vehicles, wind turbines, defense systems, electronics and other advanced technologies.

The company’s principal asset is the Round Top rare earth and critical minerals project in Hudspeth County, Texas. USA Rare Earth is advancing plans to mine and process ore from Round Top and produce separated rare earth oxides and other critical mineral products, including materials containing neodymium, praseodymium, dysprosium and terbium.