USA Rare Earth (NASDAQ:USAR) Shares Down 9.1% – Here’s What Happened

USA Rare Earth Inc. (NASDAQ:USAR) fell 9.1% during mid-day trading on Thursday . The company traded as low as $22.32 and last traded at $23.09. 19,549,586 shares traded hands during mid-day trading, an increase of 4% from the average session volume of 18,780,994 shares. The stock had previously closed at $25.41.

USA Rare Earth News Roundup

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

• Positive Sentiment: USA Rare Earth is pursuing a $2.8B strategic play — a Brazilian acquisition plus a European processing partnership — to build an independent, vertically integrated rare?earth supply chain, which could materially increase feedstock control and EBITDA visibility. USA Rare Earth’s $2.8B Power Play to Secure the Supply Chain
• Positive Sentiment: CEO commentary frames the U.S. as being in the “early innings” of rare?earth independence from China — a narrative that supports long?term demand for domestic producers and policy tailwinds (infrastructure/defense incentives). USA Rare Earth CEO says U.S. in ‘early innings’ of rare earths independence from China
• Positive Sentiment: New analyst coverage: Northland started coverage with an “Outperform” and $45 price target, signaling strong upside expectations from some sell?side desks and likely supporting investor interest. Northland Outperform, $45 PT
• Positive Sentiment: Analyst/commentary pieces (Seeking Alpha, The Motley Fool) highlight the Serra Verde deal and other derisking steps as reasons the company’s thesis just became more bullish — this fuels speculative buying and rerating narratives. USA Rare Earth: The Thesis Just Got So Much More Bullish
• Neutral Sentiment: Research coverage expansion continues: Wedbush began covering USAR, which increases analyst attention and liquidity but does not by itself change fundamentals. USA Rare Earth Research Coverage Started at Wedbush
• Neutral Sentiment: Unusually large options activity was reported, indicating elevated speculative interest and short?term positioning that can amplify intraday moves. USA Rare Earth Target of Unusually Large Options Trading
• Neutral Sentiment: Regional peer exploration news (Canamera drilling in Minas Gerais, Brazil) signals more exploration activity in the region that could affect future feedstock dynamics, but it’s early and company?specific. Canamera Accelerates Turvolândia REE Program
• Negative Sentiment: Fundamental caution: analyst write?ups (Zacks) stress ongoing losses, high costs and funding risks for USAR and peers — reminders that sizable dilution and execution risk remain, which can cap valuation until projects generate stable cash flow. USAR vs. NB: Which Mining Stock Offers a Better Value Right Now?

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Weiss Ratings restated a “sell (d-)” rating on shares of USA Rare Earth in a research note on Friday, March 27th. Northland Securities began coverage on USA Rare Earth in a report on Thursday. They issued an “outperform” rating and a $45.00 price objective for the company. Benchmark began coverage on USA Rare Earth in a report on Wednesday, January 21st. They issued a “buy” rating for the company. Cantor Fitzgerald lifted their price objective on USA Rare Earth from $28.00 to $35.00 and gave the company an “overweight” rating in a report on Friday, January 30th. Finally, Roth Mkm set a $30.00 price objective on USA Rare Earth in a report on Monday. Eight analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, USA Rare Earth has an average rating of “Moderate Buy” and an average price target of $34.20.

USA Rare Earth Stock Down 9.1%

The business’s 50 day moving average is $18.30 and its 200-day moving average is $18.87. The firm has a market capitalization of $5.03 billion, a P/E ratio of -7.70 and a beta of 1.34.

USA Rare Earth (NASDAQ:USAR) last announced its quarterly earnings data on Monday, March 30th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.07). The company had revenue of $1.64 million for the quarter. Research analysts forecast that USA Rare Earth Inc. will post -0.71 EPS for the current fiscal year.

Insider Buying and Selling at USA Rare Earth

In other USA Rare Earth news, Director Michael Blitzer acquired 100,000 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The stock was acquired at an average cost of $21.44 per share, for a total transaction of $2,144,000.00. Following the transaction, the director directly owned 847,500 shares in the company, valued at $18,170,400. This represents a 13.38% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Carolyn Trabuco acquired 1,300 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The shares were acquired at an average price of $22.60 per share, with a total value of $29,380.00. Following the completion of the transaction, the director owned 1,300 shares in the company, valued at $29,380. The trade was a ? increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 46.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On USA Rare Earth

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Sterling Capital Management LLC grew its holdings in shares of USA Rare Earth by 29.1% during the 1st 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 during the last quarter. Pier 88 Investment Partners LLC grew its holdings in shares of USA Rare Earth by 2.5% during the 4th quarter. Pier 88 Investment Partners LLC now owns 34,700 shares of the company’s stock valued at $413,000 after purchasing an additional 840 shares during the last quarter. SBI Securities Co. Ltd. grew its holdings in shares of USA Rare Earth by 20.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 5,522 shares of the company’s stock valued at $66,000 after purchasing an additional 936 shares during the last quarter. Advisory Services Network LLC grew its holdings in shares of USA Rare Earth by 2.0% during the 3rd quarter. Advisory Services Network LLC now owns 52,366 shares of the company’s stock valued at $900,000 after purchasing an additional 1,032 shares during the last quarter. Finally, National Bank of Canada FI lifted its stake in shares of USA Rare Earth by 110.0% in the 3rd 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 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.