USA Rare Earth (NASDAQ:USAR) Trading Down 1.4% – Here’s Why

USA Rare Earth Inc. (NASDAQ:USAR)’s share price dropped 1.4% on Tuesday . The stock traded as low as $24.77 and last traded at $26.35. Approximately 48,805,916 shares changed hands during mid-day trading, an increase of 102% from the average daily volume of 24,185,480 shares. The stock had previously closed at $26.72.

Key USA Rare Earth News

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

Wall Street Analysts Forecast Growth

USAR has been the subject of a number of recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of USA Rare Earth in a research note on Monday, December 29th. UBS Group reiterated a “buy” rating on shares of USA Rare Earth in a research report on Monday, December 8th. Roth Mkm raised their target price on shares of USA Rare Earth from $25.00 to $35.00 and gave the stock a “buy” rating in a report on Monday. William Blair started coverage on shares of USA Rare Earth in a research note on Monday, October 20th. They issued an “outperform” rating on the stock. Finally, Canaccord Genuity Group increased their price target on shares of 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 issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $28.00.

USA Rare Earth Price Performance

The stock’s 50 day moving average is $15.71 and its 200-day moving average is $17.13. The company has a market capitalization of $3.50 billion, a P/E ratio of -50.67 and a beta of 0.96.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of USA Rare Earth by 24.8% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 19,800 shares of the company’s stock worth $236,000 after buying an additional 3,931 shares during the last quarter. CWM LLC bought a new position in shares of USA Rare Earth during the 4th quarter valued at approximately $69,000. Altfest L J & Co. Inc. increased its holdings in USA Rare Earth by 53.9% in the 4th quarter. Altfest L J & Co. Inc. now owns 1,213,854 shares of the company’s stock worth $14,445,000 after acquiring an additional 425,377 shares in the last quarter. Weaver Capital Management LLC bought a new stake in USA Rare Earth during the 4th quarter worth approximately $1,190,000. Finally, Newbridge Financial Services Group Inc. lifted its holdings in USA Rare Earth by 2,333.3% during the fourth quarter. Newbridge Financial Services Group Inc. now owns 6,205 shares of the company’s stock valued at $74,000 after purchasing an additional 5,950 shares in 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.