USA Rare Earth (NASDAQ:USAR) Shares Down 4.3% Following Analyst Downgrade

Shares of USA Rare Earth Inc. (NASDAQ:USAR) were down 4.3% during mid-day trading on Thursday after Needham & Company LLC lowered their price target on the stock from $39.00 to $33.00. Needham & Company LLC currently has a buy rating on the stock. USA Rare Earth traded as low as $14.87 and last traded at $15.14. 8,385,992 shares changed hands during trading, a decline of 51% from the average daily volume of 17,243,881 shares. The stock had previously closed at $15.82.

A number of other analysts also recently weighed in on USAR. Wedbush raised 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 reiterated an “overweight” rating and set a $40.00 price objective on shares of USA Rare Earth in a research note on Thursday, June 4th. Northland Securities initiated coverage on shares of USA Rare Earth in a research report on Thursday, April 23rd. They set an “outperform” rating and a $45.00 price target on the stock. Roth Capital decreased their price target on USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Wall Street Zen raised USA Rare Earth from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. 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, the stock presently has an average rating of “Moderate Buy” and an average target price of $35.83.

Insider Buying and Selling

In other USA Rare Earth news, Director Carolyn Trabuco sold 13,000 shares of the business’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $22.77, for a total transaction of $296,010.00. Following the completion of the sale, the director owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.10% of the stock is currently owned by corporate insiders.

USA Rare Earth News Summary

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

• Positive Sentiment: USA Rare Earth announced definitive agreements to buy strategic minority stakes in French rare-earth processor Carester, formalizing a partnership that expands its midstream presence in Europe and strengthens its integrated “mine-to-magnet” supply chain. The deal could improve access to rare-earth oxides and feedstock while supporting the company’s long-term growth strategy. Article: USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester, Strengthening its European Rare Earth Partnership
• Neutral Sentiment: The company also disclosed that Carester’s Caremag facility is expected to begin operations in Q4 2026, which gives the partnership a clearer commercial timeline, but investors may still want proof that the project can ramp smoothly and on schedule. Article: USA Rare Earth Enters Definitive Agreements for Strategic Investment in Carester, Strengthening its European Rare Earth Partnership
• Neutral Sentiment: USA Rare Earth recently announced a leadership transition and named a new CEO, adding another moving part for the market to assess as the company pushes ahead with its industrial buildout. Article: USAR Stock Alert: What to Know as USA Rare Earth Announces Leadership Transition
• Negative Sentiment: Needham lowered its price target on USA Rare Earth while maintaining a buy rating, which can weigh on sentiment even though the new target still implies meaningful upside. Article: USA Rare Earth had its price target lowered by Needham & Company LLC

Institutional Investors Weigh In On USA Rare Earth

A number of institutional investors have recently modified their holdings of the business. Larson Financial Group LLC boosted its stake in USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock valued at $25,000 after acquiring an additional 1,433 shares during the period. NewEdge Advisors LLC increased its position in USA Rare Earth by 158.2% in the 2nd quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock valued at $25,000 after acquiring an additional 1,424 shares during the period. Ascentis Independent Advisors acquired a new position in shares of USA Rare Earth during the first quarter valued at $27,000. Center for Financial Planning Inc. bought a new stake in shares of USA Rare Earth during the 4th quarter worth about $28,000. Finally, Havemeyer Place LP acquired a new stake in shares of USA Rare Earth in the 4th quarter worth approximately $33,000.

USA Rare Earth Price Performance

The firm has a market capitalization of $3.38 billion, a P/E ratio of -3.86 and a beta of 2.45. The firm’s fifty day moving average price is $21.92 and its 200-day moving average price is $20.64.

USA Rare Earth (NASDAQ:USAR) last released its earnings results on Wednesday, May 13th. The company reported ($0.12) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.04. The firm had revenue of $5.70 million during the quarter. Analysts expect that USA Rare Earth Inc. will post -0.35 earnings per share for the current year.

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.